An increasing number of young people in the north-west are developing debt management problems, a new study reveals.

Research released by W3 Debt Solutions has indicated a 183 per cent rise in the number of 20 to 30-year-olds filing for an individual voluntary arrangement (IVA) over the last six months, reports the Manchester Evening News.

Managing director Carl Stott told the publication: "I am very worried about the dramatic rise in debt among 20 to 30-year-olds."

"One thing is certain: debt doesn’t disappear. If you are in debt, seek help immediately before your situation worsens," he added.

Mr Stott claimed that being in debt and making personal loans repayments have become "the norm among young people, setting a dangerous precedent for later life".

The rising popularity of IVAs was partially attributed to an increasing number of young Britons struggling to pay off loans after leaving university.

However, James Jones, consumer manager of Experian, advised that opting for a debt consolidation loan can be a better option instead of choosing an IVA.

Mr Jones claimed Britons should not view insolvency as an "easy way out of debt" as it can cause difficulties in getting a job or property in later life.

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