CCCS: Students should not go for "gimmicks"

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CCCS: Students should not go for "gimmicks"

Wed 13th Aug 2008

Students should concentrate on interest rates and overdrafts rather than "gimmicks" when choosing their bank accounts, the Consumer Credit Counselling Service has said.

Spokesperson Frances Walker said: "Common sense dictates that students shouldn't go for the gimmicks, the card that is offering the iPod."

Instead they should focus on interest rates and how long after graduation an interest-free overdraft is available, she said.

Ms Walker recommended student accounts, as they have good interest rates and free overdrafts.

She denied that they promote debt.

"People at university do have to use credit to fund their university and as long as they use it responsibly, they have to get the money from somewhere," she said.

According to charity Credit Action, total UK personal debt at the end of June 2008 was £1,444 billion.

In the same month, total lending grew by £4 billion, with secured lending up by £3.1 billion and consumer credit by £0.9 billion.

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