Student Debt I Help Cash Flow

By: Andrew Regan

It's estimated that the average student in the UK will leave university with a debt of around ?15,000. For countless people though, this isn't through bad money management skills or through spending too many late nights in the student union.

With the introduction of top-up fees, and living costs shooting through the roof, many students are getting into serious debt simply through the day-to-day living costs that face most people, except they aren't able to work a full-time job to meet these expenses; although many probably do come close to this whilst also juggling a full-time course. As a result, it could be said that student debt is a fact of life that has to be managed and monitored in equal measures.

On top of the countless student loans, bank loans and graduate loans that many students are faced with on completion of their course, there is also the issue of all the credit cards that may have been maxed out throughout their studies.

It's probably safe to say that most students don't fall into their dream, highly-paid job as soon as they graduate. In fact, many people will need to work in average jobs just to gain the relevant work experience before their career progresses.

So, there will inevitably be many financial obstacles to be faced upon graduation. Firstly, it's important to ensure that no more is being paid back than is necessary. It's a good idea to compare current credit card deals to see if it's worth switching, as it is often possible to get 0% interest on balance transfers for up to a year, and 0% interest on all purchases for a set period of time. This will help to create some breathing space from the countless other debts there will be to worry about.

Indeed, even for those who have managed to leave university with relatively little debt, there is still likely to be at least some cash-flow problems until that first job is secured. Many credit card providers have tailored cards specifically for people in such a position, with competitive interest rates, increased credit limits and even other perks such as free flights or free travel insurance.

So, whilst debt is a fact of life for many students, it's how it is managed that will dictate whether it spirals out of control or if it's paid off gradually over a period of time. The interest payable on credit cards is capable of crippling the most careful of borrowers, which is why it's always best to shop around to ensure no more is being repaid than is absolutely necessary.

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