Students and Debt ~ Debt Managements and Consolidation

It is no big secret that today?s students will leave university with an average of ?25,000 of debt according to figures on BBC.co.uk.? With the cost of tuition fees rising and the cost of living constantly going up, students are going to be leaving education with more and more debt.

There is no easy way to say this but there is no way of avoiding debt as a student. Unless you are very fortunate to have someone to support you, then you will almost certainly leave university with some sort of debt.

Debts such as credit card debt and loans are a little risky when you?re a student because you need to ensure that you can afford the repayments. : If at all possible it is best? to try and avoid credit cards or additional loans, as they invariably contribute significantly when high levels of debt have accrued after completing your University course, to assist your finances whilst still a student, why not get a weekend job to earn a little extra money?

The most common debt for a student is the student loan. The majority of students will have one of these. Your student loan is collected differently to unsecured loans, you will only starting repaying once you earn over ?15,000 and you will only have to pay a small percentage of your salary which is taken straight from your wages. A student loan is also different from unsecured loans as you cannot be chased for the debt, if you do not earn above the threshold they cannot demand money from you and if you are paying towards it, they cannot demand more from you.

Other top tips:

Cook your own food, cut down on the takeaways and make yourself some proper home cooked meals.Have a night in; instead of going out every night why not put on a DVD with your friends.

If you have already graduated from university and are one of the thousands with stacks of debt then you need to get free and impartial debt advice. You need to make a list of who you owe money to and how much your repayments are. You then need to work out your incomings and outgoings to see what you can actually afford.

Student loans or grants are listed as priority creditors and therefore cannot be included in a Debt Management Plan, Individual Voluntary Arrangement, Bankruptcy or a Debt Relief Order. However any other loans (providing they are unsecured) or credit cards that where taken out whilst a student can be included in all of the above plans.

If you are struggling with debts then please call Payplan on 0800 2802816.

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