Latest Debt News
Students 'need to be wary of borrowing money'
23/04/2008 17:15:00
The National Union of Students (NUS) has called for students to try and keep out of debt as the cost of borrowing goes up.
According to the body, the worst way to combat any financial problems would be to apply for a bank loan or store card as they have higher interest rates and are often difficult to handle.
Student loans and interest-free overdrafts are the best way to use credit as no repayments are expected upon these financial products until a student graduates.
David Malcolm, head of social policy at NUS, said that credit cards and any other credit outside of interest-free overdrafts will be more expensive.
"A lot of students do rely on those, whether they should or not is another matter but they do," he added.
The NUS advised that any students worried about their financial situation should go their university debt advisor for help.
Meanwhile, in the US, Citigroup has pulled out the student loan market as a result of credit crunch.
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