8 September 2008 634 views No Comment Print This Post  Email This Post

According to a recent research conducted by Halifax, a third of students own a credit card and the average balance exceeds £250. Further, female students are more likely to have higher debt than their male peers.

Whilst attractive credit card offers are popular, they are not as common as other financial services aimed at students, for example student loans - currently held by 80% of students. A staggering 64% of students also have overdrafts which are interest free during their time at college/university.

With the current economic climate, obtaining credit has become increasing difficult, but still accessible by students. Personally, I have four credit cards and an overdraft with a combined limit of £6,500 - all obtained whilst I was a student - and I often wonder why financial institutes allow a part-time undergraduate to have access to such funds with no stability or assests. Yes, it was my choice to request this credit and I am grateful for the help it has provided when I was struggling, but surely we to monitor these situations closely to ensure “being in the red” is not a repetative, everlasting cycle?

Banks are beginning to turnaround a little; placing stricter limits on credit, tightening acceptance guidelines, alerting account holders by text message a payment is due and assisting to consolidate balances into one affordable payment.

Credit will always be available to students, whether it be in the form of plastic or a student loan. But think carefully before making an application and always try to plan ahead than spend erratically. It can be tempting to blow the bursary on new clothing, but seriously it doesn’t help when you need course material half way through the term!