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    Young people lack the skills to make best use of their money, an expert has claimed.

    Alastair Mathews, director of policy for the Personal Finance Education Group, said: "Young people are serious and responsible about money anyway; I think they often just lack the knowledge and skills they need to make the best use of it."

    He added that an increasing number of young people recognise the years following their 18th birthday will be expensive and are preparing for that by making savings.

    Despite this, recent research by the charity Rainer revealed that nearly four in five young people have been in debt with a third owing more than £5,000.

    The charity discovered that one in five young people had owed more than £10,000.

    For those struggling to release themselves from debt, an individual voluntary arrangement could be the answer.

    Set up through the courts and by insolvency practitioners, they allow debtors to make affordable repayments and to write off the debt they cannot afford.

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