A personal finance expert has warned that young people in the UK could be pushing themselves into serious debt, after new research found that many are overspending in order to maintain parity with their friends.

Cliff D'Arcy, a personal finance writer, made the claim after research from mobile banking firm Monilink revealed that more than 25 per cent of 16 to 34-year-olds questioned were spending money on things such as gadgets and fashion items in a bid to compete with their peers.

Using the term "bling-itis, coined by Monilink, Mr D'Arcy claimed that bankruptcy was a real possibility unless consumer spending is reined in.

"Two-thirds of these young people have admitted that they are still trying to clear credit card debts that they built up two years ago. This 'bling-itis' is edging them towards bankruptcy," he said.

According to the survey, 22 per cent of people admitted to having built up too much debt and are now facing problems making the repayments, while 21 per cent felt that treating oneself was preferable to saving.