Debt fears hit young consumers

Figures from the financial services firm show that close to a third of Britons decide to live with their parents while they attend university in an effort to avoid debt management problems when they graduate.

And while millions of consumers across all age groups search for a debt solution, the fear of financial woe is rising among the student population with nine per cent more people opting to cut costs and live with their parents this year compared to last.

Caroline Brady, a spokesperson for Lloyds TSB student banking, said: “Students face higher levels of debt than ever before and whilst it’s essential that they find ways to keep costs to a minimum it is also important that students think carefully about all the options.

“Savvy budgeting skills can really help students to start off on the right foot while they get to grips with managing their own money.”

Meanwhile, it was revealed last month that HSBC is planning to scrap its interest-free graduate banking services later this year.