Students could end up turning to credit cards Credit Cards

Students could end up turning to credit cards

19 Oct, 2009 Credit Cards Cards Credit Cards

There are concerns that many of the students that have headed to university across Britain in recent weeks could quickly find themselves becoming increasingly reliant on credit cards as a result of having no savings in place.

With the living and other costs involved in being a full time student away from home these days many students may find that they are facing far higher financial commitments than they expected, and this could quickly lead to spiralling debt such as credit card debt for many of these students.

According to a recent report many students may try and tap their parents for the cash that they need if they have failed to put money aside to tide them over whilst they are at university.

However, not all students will be able to get financial back up from their parents, and for these young people the only option may be to turn to credit cards and loans, further fuelling concerns over the levels of debt that students get themselves into when they go to university.

Recent research was carried out by credit ratings firm Equifax, and found that around 40 percent of undergraduates going back to university had failed to put any money aside to help them with their tuition and living fees whilst studying.

The research also showed that each month only 20 percent of students managed to make even the minimum repayment on their credit card, and 35 percent said that they were worried with regards to how they would make repayments on their debts.

An official from Equifax said: “If students find they need a credit card, we think it is important that they try to view it as a resource for emergencies rather than a way of funding a night out, or they make sure they are paying off as much of the balance as possible each month.”

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