Students told to be savvy

Thu, 16 Aug 2007

Students who amass debt in loans and credit cards must be smarter with their money if they are to avoid a lifetime of debt, one analyst has warned.

The cash that undergraduates splurge whilst attending university can see them saddled with debts rather than savings when it comes time for them to join the world of work, said Callcredit.

Data cited by the firm from the Association of Investment Companies shows that students, on average, owe a hefty £13,500 to various parties - a sum that would not be east to clear even on a graduate salary due to the levels of interest applied.

Melanie Mitchley, consumer debt expert at Callcredit, commented: "Our advice to students is to think before taking out a loan or applying for a credit card ."

She also advised students to have a look through their current credit report "as it will help you get an overall picture of the current state of your finances".

Consumers can obtain a copy of their credit report by contacting credit reference agencies such as Experian and Equifax if they are concerned about their history.

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