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She said: "We'd
say they're not getting enough advice. There's a lot of initiatives
in terms of financial education for students in secondary school
which is really useful and will hold students in very good stead
later in life. But bearing in mind that an awful lot of students
when they leave to go to university are experiencing their first
time away from home, managing bills and stuff like that - and given
the pressure on students in every other part of their life, it would
seem sensible that they were given more financial advice, especially
when there is so much open to them - credit cards, loans, etcetera.
Given all of those things are open to them, we'd hope they'd be
given better advice financially."
Meanwhile, it
was suggested that those looking to take out a product or open an
account with a bank or other financial services provider should look
to avoid the "gimmicks" institutions may offer in an attempt to
"bribe students to go there". The NUS spokesperson stated that
students should disregard such offers and concentrate on the actual
features of the product, especially on the level of interest
charged. She reported that consumers 'lulled in' by uncompetitive
deals may see pressure on their finances increasing in coming months
"especially with the commercial rate of debt".
In addition,
she reported that the effects of student debt can affect young
people's ability to manage their finances in the years after leaving
university. As they have often begin repaying their student loan at
the time when "they're most financially vulnerable"- for instance
they are also starting to think about making their initial steps on
the property ladder or raising a family - in turn such consumers
could well find their ability to service other demands on their
spending, for example paying personal loans and utility bills,
squeezed further.
Consequently,
those consumers who find that they are particularly struggling to
manage their finances in the years following graduation may well
wish to consider opting for a debt consolidation loan. In doing so,
borrowers could be able to merge money owed to a number of creditors
into a single low-rate monthly repayment, which could consequently
leave them with more disposable income. This spring, Helen Saxon,
from the Finance and Leasing Association, reported that although
opting for a debt consolidation loan can be a useful way of managing
their finances, consumers should be aware of how much money they are
taking on and whether they will be able to afford making repayments.
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