STIGMA about debt does not worry young consumers, according to a report that says nearly one in four would consider declaring themselves insolvent to get rid of the high debts they have run up.

About 22 per cent of those aged 18 to 34 would consider going bankrupt or taking out an Individual Voluntary Arrangement if their financial situation became serious enough, the survey found.

Market analyst Mintel said bankruptcy, once considered a matter of shame, had lost its stigma among younger people who had adopted an "easy-debt lifestyle".

The 18-34 age group is the most likely to have unsecured debt, with 60 per cent owing money on credit cards, overdrafts and loans. They have also racked up higher levels of debt than other age groups, owing an average of £3,200 each, 40 per cent more than the average adult and four times the level of those aged over 55.

Todd Davis, a senior finance analyst at Mintel, said:

"Bankruptcy is now widely accepted among young adults, mainly because it is the natural follow-on from rising debt but also because the government has made the conditions of bankruptcy less painful."

Matt Henderson, a business recovery and insolvency partner at the accountant Johnston Carmichael, said: "It is certainly the case that there isn't such a stigma attached to bankruptcy for the younger age group.

"This is partly explained by the fact that government policy encourages students to take on debt and introduces them to the concept of paying back money at a later date.

"In Scotland, the situation is different and it is not possible to get discharged from bankruptcy after only 12 months as it is in England and Wales. There are also longer-term implications, such as a poor credit history for six years or more."

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