New FSA initiative aimed at helping students cope with debt

The Financial Services Authority (FSA) is launching a new initiative to help university students cope with debt management.

It will aim to introduce its Money Doctors education programme to an extra 50 campuses after research showed that young people are the least able in managing their debts among the adult UK population.

Students in higher education will be encouraged to become more financially competent after a study conducted by the organisation found that one in three are constantly overdrawn and never check their bank statements.

Around 100 advisors have previously been sent to 50 institutions, a figure that the FSA hopes to double in the coming year.

Director of capability Chris Pond commented: “We have found that Money Doctors has had a positive effect on the 90,000 students … and in most cases they have learned to manage their money better.”

Recently, the Fair Investment Company advised graduates to switch bank accounts in order to avoid rising overdraft charges once they left university.