A debt advisory firm has wanted that young adults are most likely to struggle with housing costs and utility bills, and are relying on credit cards and loans to make ends meet.

A study by Debt Advisory Centre shows that almost a third of 18–24 year-olds used credit to pay their housing costs last year. This compares with an overall rate of 16% of adults who resorted to this.

A fifth of 18–24 year-olds also admitted to being at least one month behind with their rent or mortgage payments, more than double the rate for other adults. Last week, the government announced it would scrap automatic housing benefit for 18-21 year olds.

As well as using credit to pay housing costs, a quarter of 18-24 year-olds also admitted to paying their most recent utility bill with a loan or credit card. A third said they worry about being able to afford their next bill.

Figures released on Monday by the Insolvency Service show that insolvency rates decreased for all age groups except 18-24 year-olds between 2013 and 2014. Insolvency rates were also higher among women than men in this age group.

Melanie Taylor, spokeswoman for Debt Advisory Centre, said: “It is incredibly worrying to see such a high volume of young people struggling to make ends meet. Financial independence is something that should be encouraged, but clearly it is increasingly out of reach for many.

“As a society, we must ensure that we are equipping young people to make sensible financial decisions and giving them the means to do so.”