Debt Management Solution for Students

If you are a student, the chances are you are already in debt before you've even started your career, so which debt management solution should you choose?

Why are students in debt?

With a huge increase in university fees students are increasingly forced into debt, averaging between 10,000 to 14,000 per student. With a competitive job market and increasing house prices, this can add to the many financial pressures on students as they strive for a financial solution to become independent.

University or bust

There is a growing concern that more and more potential students are deciding to turn down university as an option because of the enormous debt it incurs. For those that do take the plunge, the quality of education could also suffer as more students need to work part-time in order to make ends meet. Working a 16 hour week can change your degree from a 2:1 to a 2:2 and not only will your degree suffer but volunteering, socialising or joining clubs suffers too.

Crippling

The prospect of paying back debt and finding a debt management solution can be a daunting one for students. It can even lead to extreme and dangerous behaviour, such as online gambling or even selling embryos on the net.

Borrowing

Increased overdrafts, loans and credit card borrowing mean debt can soar. Ideally, going to University should be about education, experience and opportunity, but the reality is it is also about coping with debt management and finding a solution for your finance. Some students who go on to take postgraduate qualifications have reported having to find 33,000 debt repayments. In such cases, a solution might be to use debt management programmes, where the cost is spread over 10 years, with interest charges frozen. Call an MRA adviser for more information.

The cost of university

• Living expenses. It's been estimated students need an average of 8,000 a year in living expenses. The maximum for a student loan is 4,000.
• Student overdraft. Be warned, as soon as you are in employment the bank wants their money back!
• Credit cards. It's tempting to go for low introductory rates but when those rates shoot up it can be crippling.
• Work. There are part time jobs in bars, restaurants and call centres but your studying will inevitably suffer.

Faced with such a quandary of finance, it may be advisable to visit an independent financial adviser for advice about which solution to debt management best suites you.

For advice abpit which debt management solution is right for you, visit MRA Debt Help at www.mradebthelp.co.uk or call 0800 612 92 23.

For independent financial advice, visit our sister company, Mike Robertson Associates, at www.mraltd.com. You can email an independent financial adviser for professional help, or call 0870 803 1995.