DEBT is a fact of life for young workers. A generation has grown up with student debt at levels their parents never even contemplated. But today’s twenty and thirtysomethings are also fuelling the

£1.1 trillion debt mountain after they graduate, piling up borrowing on credit cards and personal loans.

Debt counsellors report record numbers of young people turning to experts for help. Bankruptcies among the under-40s are soaring. Research published this week by ClearDebt, a company that specialises in offering debt- laden consumers an alternative to bankruptcy, looked at the income-to-debt ratio of 12,000 borrowers across the country and found that more than 60 per cent of those in severe financial difficulty are under 35.

Experts believe that the growing incidence of debt among the young is evidence of a cultural shift in attitudes towards finances. Research by National Savings & Investments (NS&I) found that a “cavalier” attitude to spending on plastic is exacerbating debt problems among the young. More than a third of people aged between 25 and 34 admitted to “not thinking they are spending money when using debit cards”.

The first advice handed out by debt counsellors is to start keeping a budget. A spokeswoman for the Consumer Credit Counselling Service (CCCS) says: “Budgeting does seem to be a lost art in the age of the credit card. There needs to be a move to tell young people in schools and universities that spending on credit has to be paid back.”

The CCCS has launched a website to give young people an online resource to help with budgeting and the management of personal loan and credit card debts. The website, www.moneybasics.co.uk, has a budget, mortgage and retirement calculator.

Borrowers who have more than one creditor can feel overwhelmed. But debt advisers urge borrowers to look at their loan commitments in order of priority. You should make sure that a mortgage and any debts secured on a property are repaid first. When facing unsecured debt, you should look to pay down more expensive loans first.

Graduate loans from a bank will have a higher interest rate than money borrowed from the Sudent Loans Company, so pay back the bank first. If you have credit card debts, make use of the 0 per cent deals available. However, be aware of the switching fees applied on some cards. You can find the best deals on www.timesonline.co.uk/money.

If your debts start to spiral out of control, seek help fast. Debt advisers say that most debtors contact them too late. Charities such as the CCCS and Credit Action provide counselling and support.

However, the soaring number of personal insolvencies — more than 6,000 young people have declared themselves bankrupt in the past financial year — demonstrates that worrying numbers are not seeking help.

Bankruptcy is the worst that can happen, but be wary of the lesser consequences of falling into debt. Richard Mason, of Moneysupermarket.com, the price comparison website, says that young people need to realise the “imperative importance” of keeping an unblemished credit rating.

“Don’t kid yourself that the odd missed credit card repayment does not matter,” he says. “People who default on credit agreements can find themselves unable to get the most competitive mortgage in their thirties.”

• CCCS: 0800 1381111, www.cccs.co.uk; Credit Action: 01522 699777, www.creditaction.org.uk.

• For more on borrowing visit www.timesonline.co.uk/borrowing