Students 'stay at home to avoid debt'
Published On 19 July 2007
In a bid to reduce debt and the future need for financial tools like IVAs, students are increasingly living at home while they study, according to a report from Lloyds TSB.The bank found that fears over debt mean that 31 per cent of the 446,765 people planning on starting university in the autumn expect to live at home to keep costs down.
Last year, just one in five (22 per cent) of students remained at home during their studies.
Of those planning on living away from home while at university, 26 per cent were already worried about how they will manage their money and avoid debt. To address the problem, 71 per cent are planning on getting a job to bring in some extra cash.
Caroline Brady, of Lloyds TSB student banking, commented: "Students face higher levels of debt than ever before and whilst it's essential that they find ways to keep costs to a minimum it is also important that students think carefully about all the options.
"A smart approach is to plan ahead and seek guidance now on how to manage your finances to avoid getting into trouble later on."
Alvin Hall, an independent financial expert, added: "Deliberate denial can only last so long before one has to begin dealing with financial problems that are now much bigger, and probably more desperate."
He concluded by pointing out that debts created at university could result in "huge interest charges and a ruined credit rating".
