Students must avoid "classic mistake" in finances

18/08/2009

Students hoping to avoid getting into unsustainable debt have been given advice by a financial website.

Confused.com released new analysis, pointing out that big savings can be made both through budgeting and taking out a best-buy utilities deal.

The site said that many students make the "classic mistake" when moving into new digs of sticking with the previous occupant's gas and electricity supplier.

Instead, the group was advised to switch to a better tariff as soon as possible.

"A sustained effort should be made to read the meter every time a bill comes in, to ensure bills are based on actual usage, rather than estimates, which can be pricier," Confused.com added.

More generally, students were recommended to use the budget calculator on the UCAS website, to scour the best-buy tables to pick the best bank account and to always seek help if debts become too much.

Recent data from the Association of Investment Companies showed that around one in four students owe over £20,000 when they leave university.

Meanwhile, a survey from the National Union of Students Scotland discovered that two-thirds of Scottish students owe money to either family or friends.

Tags; Income Worries and Debt, Recent Graduate Debt,

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