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Students fail to take debt seriously
19/01/2006 16:48:00
Students are underestimating the seriousness of their debt and the difficulties they face paying it off, according to new research.
According to MyEquifax, an online credit reference agency, nearly a third of students unrealistically believe they can pay off their debts within a year of leaving university. This is despite the fact the average debt is £13,000 and the average starting wage is £14,090.
Furthermore, nearly a third believe they will only have an additional £500 of debt on top of their student loan, but the survey shows this is likely to be more than three times this figure.
Fewer students are saving money before they go to university and many shirk responsibility, with one in five claiming they would consider bankruptcy to clear their debt.
Neil Munroe, MyEquifax external affairs director, said: "Financial planning is not something that students should put off and it is not something that should only be considered once students are at, or have left university. The earlier financial planning is started, the easier debts can be to manage."
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