Average debt levels have soared by 75 per cent since 2008 among young people living in London, according to figures released by the city’s deputy mayor.

The average debt level for 17-24 year-olds stands at over £5,500, up from £3,500 in 2008 when the recession began, according to a report by the London Debt Strategy Board (LDSB) entitled "Treading Water".

There are also more people in arrears with debts in London than in any other UK region. The number of Londoners in arrears is 13 per cent, compared to the national average of 10 per cent, the report found.

As a result of the findings the LDSB, founded in 2009 by deputy mayor Richard Barnes, has called for significant improvements to the capital’s debt advice services in the face of what he called "unprecedented demand".

Barnes said: "Falling into debt is not just a financial problem for many people – it can easily become a crisis, which affects their health, their families and their ability to..Click HERE to read more