The terms and conditions relating to student loans should help young British consumers understand the reality of what it is to spend on credit, according to one expert.
In response to news that credit reference agencies will be informed of an individual’s defaults relating to their student loans in future, Samantha Owens, head of personal finance at Moneyfacts, has suggested that the new rules could provide an early lesson in debt management.
Students and consumers of all ages need to understand that if they borrow money they will be obliged to meet repayment demands or face certain consequences, Ms Owens has made clear.
“It’s the same as any kind of finance – all borrowing is done on a trust basis,” she said.
“Students are intelligent people; they need to learn that finances need to be paid back,” Ms Owens added.
A new debt related assessment scale used by Lloyds TSB in a recent report suggested that millions of people around the country are financially obese and should be looking to improve their debt management fitness.