Monday, August 24, 2009
Category:
Consolidation
According to uSwitch.com, should those students entering university education this September chose the wrong current account, they may collectively end up paying £30 million in interest payments.
As A level results are just upon us, uSwitch.com is encouraging students to research potential student accounts before starting university ensuring that they get the best student account to suit them.
Studying beyond 18 continues to rise as students are faced with increased tuition fees, debt and a challenging job market at the end of their study. The average student debt at the end of university is currently reported to be £14,161 – a figure which is expected to rise to £26,400 by 2016. With 10,000 additional university places created across the country this year, finding a part time holiday job to pay for studies and keep debts under control is tough.
Louise Bond, personal finance expert at uSwitch.com, says: "Amidst the excitement of setting off for university for the first time, finances may not be at the forefront of many students' minds. But with banks fiercely competitive on winning student custom, young people are lured in with the potential to access huge overdrafts and gain impressive freebies. However, it is important for students to not get sucked in by these immediate perks, and examine all aspects of the account, particularly the accompanying fees, charges and interest rates.
"For many graduates, debt is an expected millstone around their neck long after they leave university, and so, with the economic outlook in the years to come still unpredictable and with competition for jobs fiercer than ever, it is vital that students entering university education give themselves the best possible chance of managing that debt by picking the right account from the offset. Graduates too mustn't be lackadaisical when it comes to graduate accounts by simply sticking with their student account provider. Instead, they must review their account upon graduation and shop around for the best deal. Switching an overdraft balance to a new provider may mean you could get a prolonged 0% period."
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Graduate homeowners who have multiple debts and who would like to consolidate them, could consider a secured loan. A secured loan is one of many options to consolidate debt and could be used to place several monthly repayments into one, potentially lowering monthly outgoings. If opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
