Students should avoid taking on unnecessary debt as they can be difficult to repay after university warns consumer credit reference agency, Callcredit.
They are often tempted to splash out on clothing, holidays and going out with friends, which can prove costly, says Callcredit consumer debt expert Melanie Mitchley, and many students borrow money to cover these expenses and find themselves in financial difficulty when the time comes to pay it back.
“We are urging all students, whether freshers or in their final year, to be aware of the potential pitfalls if they don’t take control of their financial affairs,” said Ms Mitchley.
“Our advice to students is to think before taking out a loan or applying for a credit card. Also, take a look at your credit report, as it will help you get an overall picture of the current state of your finances and help you decide if you really can take on any more credit,” she suggests.
The Student Loans Company provisional 2006-07 figures reports that student debt has reached £18.1 billion and this figure is likely to increase if students do not heed advice.
Furthermore, a recent survey from Barclays bank has revealed that, on average, students owe approximately £13,500 when they leave university.
Find out more about student debt
and student debt management