Egg: Students hope to avoid adverse credit problems

Wed, 02 Nov 2005

Even though university students are locked into what they call "unavoidable" debt, they claim they will become credit conscious consumers once they start their careers, a survey has revealed.

Some 47 per cent of uni students say their attitudes to debt have been changed fundamentally since they were faced with the high fees of tertiary education, the research by online bank Egg shows.

Six in ten students will "definitely" rely on credit cards for spending in the future, but three-quarters say they will only spend what they can afford.

Budgeting seems to be a serious problem for students, but four in ten plan to make an effort to manage their money effectively so as to avoid adverse credit problems.

"Whilst still intending to use credit in the future it appears that the graduate of the noughties intends to adopt a responsible attitude towards credit, rejecting the 'have it now' attitude associated with the 80s and 90s," says Egg's chief financial officer, Mark Nancarrow.

Nearly three-quarters of the students surveyed said their financial services providers should use technology, like text messaging, to help banking customers avoid unnecessary debt.

In September, Egg introduced Egg Money - a new spending account which helps banking customers track their monthly expenditure and rewards them for doing so.

With the account, money allocated to expected bills gets separated from money available for spending, keeping banking customers in control of their day-to-day financial situation.

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