Students must approach personal loans with caution
05 February 2010 17:16:30
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| Debt advice website warns students about dangers of personal loans. |
Huge numbers of university attendees currently take advantage of the government's student loan scheme, which varies in value depending on individual circumstances.
However, debt advice website thinkmoney.com has urged students who are considering applying for personal loans to provide extra cash to ensure they can budget for them.
"Many students use credit cards and personal loans to supplement their income while they're studying," the report noted.
"This is fine providing they can afford the repayments, but these kinds of debt tend to carry much stricter repayment terms than overdrafts, meaning that the consequences of missing payments can be quite serious."
The website advises students to set out a strict budget and to seek debt advice immediately if they find that their outgoings are exceeding their income.
Last August, an annual poll by independent university guide Push indicated that some students who started university in 2007 will have debts of about £23,500 by the time they graduate.
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