Students urged to avoid financial pitfalls

With thousands of young Britons preparing to start university life, students have been warned that they should take steps to ensure their debt management problems do not spiral out of control.

Financial comparison firm MoneyExpert.com reports that that the average charge levied by banks against students exceeding their overdraft limit stands at £32.75 and suggests that young consumers need to decide carefully how best to borrow money.

Indeed, MoneyExpert.com claims that banks around the country are keen to attract students to their money lending services and that in many cases offers from financial service providers amount to nothing more than gimmicks.

Sean Gardner, chief executive of MoneyExpert.com, said: “The big banks are desperate to sign up students in the hope that they’ll either remain with them long-term or will borrow lots of money, or both.”

“But choosing the right bank is a bit of a minefield. It often depends on your financial circumstances as the offers do vary. Making a comparison is a must.”

A report from Moneyfacts.co.uk recently warned that credit card debt can cause long-term financial difficulties for students borrowing money in this way.