Bankruptcy considered by 9% of former students
Around nine per cent of former students have considered entering bankruptcy as a way to solve their debt management problems, according to recent research carried out by uSwitch.com.
The financial comparison firm reports that as the levels of debt being taken on by students continues to increase, the option of entering bankruptcy is becoming a more common consideration for young Britons.
According to the latest study from uSwitch.com, students around the UK have accumulated a total of close to £27 million worth of debt and for many the financial burden means they put off buying a house or having children.
Mike Naylor, personal finance expert at uSwitch.com, said: “The cost of attending university has risen over time, partly due to increased tuition fees and, to a lesser extent, due to increased housing costs.
“As a result, more money than ever is being borrowed by students to fund their way through university, with some students starting work with debts of up to £30,000.”
Figures from the Insolvency Service showed recently that 7.7 per cent more people in the UK entered bankruptcy during the second quarter of this year compared with the same period in 2006.
