Credit crunch 'means students need to avoid debt'
Published On 24 April 2008
Students need to be particularly careful that they do not get into debt during the credit crunch, a financial expert has said.David Malcolm, head of social policy at the National Union of Students (NUS), said that the cost of credit was rising rapidly and this could have a significant impact on student borrowing.
Mr Malcolm explained that many students relied on "credit cards and any other credit outside of interest free overdrafts" to survive at university and explained that this sort of borrowing was set to get more expensive.
He added that the best form of borrowing students could opt for were student loans and interest free overdrafts.
However, he said that these people should avoid bank loans and store cards, as these "have much higher interest rates and are often much more difficult to handle".
In addition, Mr Malcolm pointed out: "More students will find that their parents won't be able to support them."
Recent figures from Abbey Banking showed that 21 per cent of children aged between 11 and 15 were worried they would get into debt in later life.
