Student debt is a massive problem, especially when survival is based around a system of costly student loans. A 2008 Push survey of 2,000 students suggested that "the average debt tops £4,500 for each year of study - nearly 10% more than last year".
Avoid Student Debt By Taking a Year Out
A year of practical work experience could make all the difference when graduating, but it could also improve student finances dramatically. The key is to live at home and not to rent. Parents will be supportive of this as it will save them picking up the tab later.
Try to save £600 per month between A Levels and University. By taking advantage of this gap year, it's is possible to save £8400. Saving £3600 of this into a cash ISA helps with tax avoidance.
Live at Home Whilst at University to Eliminate the Need For Student Loans
There are universities in just about every part of the country and living at home will save thousands in accommodation costs. Spending tomorrow's money today is almost always a bad move as it will have to be paid back at some point.
Sell Unwanted Items to Reduce Student Debt
Over the years many things will be acquired that aren't of any use. Why not sell these on eBay and raise extra cash to pay off student credit card debt? Parents may even have things that they are willing to sell to assist.
Student Deals
Banks will offer all sorts of student deals to get an undergraduate to open a student bank account with them. They do this to tempt future top earners into their web. Students who open bank accounts are also very likely to stay a customer.
Look for the bank that offers the best deal on overdrafts. A £20 cash incentive may seem great, but it won't last very long. If travelling is a daily activity, a young persons' rail pass will help save a third on those costly train journeys home.
The Student Credit Card Debt Problem
A credit card seems like a great idea, but the reality is that it is far too tempting to buy things. The last thing needed is credit card debt or even bad credit before graduation. Why not get a pre paid credit card instead? This would ensure that the only money that is spent is money that has already been earned.
Bankruptcy Doesn't Remove Student Loan Debt
The Enterprise Act 2002 has stopped student debt being written off through bankruptcy. Too many students declared personal bankruptcy so the laws were changed. What ever debt is accrued will be taken from future salaries via a series of student loan repayments.
Just following a few of these ideas will have a dramatic impact on levels of student loan debt and student credit card debt. Think carefully before parting with any cash as prevention is always better than the cure.
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