Students 'should prioritise debts'

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Students 'should prioritise debts'

Wed 29th Oct 2008

Students should work out which of their debts need to be repaid the most quickly and act accordingly.

This is advice given by Harriet Swain in the Guardian.

Noting that it is almost inevitable that student will accumulate debt, Ms Swain urged them to work out how much they owe, including credit cards and household bills.

She suggested talking to creditors, explaining that banks and utility companies can usually help to devise a workable repayment plan.

Students were also told that such firms prefer to be kept in contact and would rather receive small but regular payments than none.

In addition, Ms Swain said that paying for items in cash could help prevent being lured into unnecessary impulse purchases.

Employment is also helpful, with tax implications looked at, as well as selling possessions on eBay or at a car boot sale.

Earlier this month, the Guardian also reported that a third of graduates who started studying since 1998 are earning too little to be repaying their student loans.

The figures were released by the government after a parliamentary question was posed by the Liberal Democrat Party.

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