Posted: Mon Jun 18, 2007 10:06 am
Students 'must be prudent to avoid long-term debt problems'
Students leaving university can find themselves with considerable levels of debt - and the possible need for an IVA - but these risks can be mitigated through sensible action.
That's the opinion of Andrew Hagger, from the website Moneyfacts.co.uk. He revealed that there were a number of simple things newly ex-students can do to stop their debt mounting.
"On leaving university, searching for the best current account provider may be the last thing on many graduates' minds," Mr Hagger explained.
"But by taking the time to shop around, they could find an account that suits their circumstances and also save some money into the bargain.
"Graduates will often remain loyal to their student account provider. However, as long as you have proof of qualification and have managed your account within your agreed overdraft limit, then there is no reason why you shouldn't switch to a better deal."
It was also revealed by uSwitch.com that graduates, and other consumers, need to be careful about what their bank charges them if they use their overdraft.
The website pointed out that a number of major lenders have made it easier for people to get into debt because they have increased interest rates on overdrafts.
While the Bank of England has only increased rates by 0.5 per cent this year, the website found that overdraft interest rates had typically risen by 0.93 per cent.
Source: themoneyhighstreet.co.uk
Please post any news stories about IVAs here:
http://www.iva.co.uk/forum/default.asp?CAT_ID=5
See my Blog:
http://ivanews.blogs.iva.co.uk
Students leaving university can find themselves with considerable levels of debt - and the possible need for an IVA - but these risks can be mitigated through sensible action.
That's the opinion of Andrew Hagger, from the website Moneyfacts.co.uk. He revealed that there were a number of simple things newly ex-students can do to stop their debt mounting.
"On leaving university, searching for the best current account provider may be the last thing on many graduates' minds," Mr Hagger explained.
"But by taking the time to shop around, they could find an account that suits their circumstances and also save some money into the bargain.
"Graduates will often remain loyal to their student account provider. However, as long as you have proof of qualification and have managed your account within your agreed overdraft limit, then there is no reason why you shouldn't switch to a better deal."
It was also revealed by uSwitch.com that graduates, and other consumers, need to be careful about what their bank charges them if they use their overdraft.
The website pointed out that a number of major lenders have made it easier for people to get into debt because they have increased interest rates on overdrafts.
While the Bank of England has only increased rates by 0.5 per cent this year, the website found that overdraft interest rates had typically risen by 0.93 per cent.
Source: themoneyhighstreet.co.uk
Please post any news stories about IVAs here:
http://www.iva.co.uk/forum/default.asp?CAT_ID=5
See my Blog:
http://ivanews.blogs.iva.co.uk