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Being a student seems to be synonymous with being in debt, and students need to learn how to manage their money now more than ever, in order to limit the damage they could be inflicting on their financial wellbeing in the future. While it is expected that students will accumulate debt whilst at university, it is important not to let debts spiral out of control.

The university experience will be the first time many students will live away from home, and some will find it hard to adapt, especially when it comes to managing money. Concentrating on studies while trying to budget for everyday living can be difficult. Recent studies by the Consumer Credit Counselling Service (CCCS) revealed that students now leave further education with an average debt of at least £10000. Furthermore, in September graduates will need to repay more towards student loan repayments when interest rates on their loans increase from 2.4 percent to 4.8 percent, so students will need to be especially careful not to fall into the debt trap.

Compared with figures from ten years ago, student borrowing has tripled with the current total student debt levels estimated at £18 billion. But what can students do to avoid ending up with mountains of debt and adding to an ever-escalating problem? While some students look to heightened career prospects upon completion of their studies, the real answer is to take control of your finances at an early stage of student life. Getting a part-time job, for example, is a path many students take to help fund their way through their studies. Many part-time jobs can offer flexible hours to fit around lecture and tutorial times, and you might even be able to work full-time during holidays.

Further education requires a lot of reading, but don’t rush out and buy every book on your reading list on the first day of term. Many students who leave further education tend to sell on their books to other students and you may be able to pick up a copy cheaper than in bookstores. Alternatively, try eBay or Amazon, who often carry a huge range of second hand text books and you can often pick up required reading at a fraction of the cost. Most campus libraries carry multiple copies of required reading material for most courses, so if all else fails you should be able to borrow a copy.

If staying at home isn’t practical, look to share a flat with other students rather than on your own. Sharing the cost of rent and bills will be a lot less expensive than living the single life. Furthermore, when it comes to food shopping, going with flatmates or friends means you can take advantage of the many ‘buy one get one free’ offers. And while going out every night may make you popular, remember that it could also lead to a serious lack of social life later in the year.

When it comes to credit, students are no different to any other consumer in the eyes of lenders. Most major banks offer student accounts with overdraft facilities and discounts, but spending habits on loans and credit cards are still recorded and kept on your credit files. These are used by lenders too assess your creditworthiness should you apply for a mortgage, loan or credit card in the future. As such, its important to keep up repayments on any credit you have, otherwise you might find it difficult to obtain credit in the future.

However, if you do find yourself with mounting debts, don’t despair. Your student counsellor is often on hand to offer debt advice to students struggling with their finances, while there are many debt consolidation and debt management companies who can help ease the burden of student debt – allowing you to concentrate on your studies and make the most of student life.

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Janine Barclay is a freelance writer and member of the NetPressArticles.com editing team. NetPressArticles.com (http://www.netpressarticles.com) is a high quality, free article directory and press release submission directory.

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