​National Debtline research shows 31% of students aged 18 to 24 already hold non-student loan debts, owing an average of £3,409.
Nearly a third of full-time students aged 18 to 24 hold debts outside of their student loan and around half ‘regularly’ worry about money, according to new research from National Debtline, run by charity the Money Advice Trust. The findings come as many new students move into student accommodation this weekend.
The newly-published findings, based on a survey of 2,042 18 to 24 year olds conducted online for the Money Advice Trust by YouGov, throw a spotlight on students’ experiences with other kinds of debt including credit cards, overdrafts and loans from family and friends. The findings follow the publication of the charity’s Borrowed Years report on young people more generally earlier this month.
The findings show that a significant proportion of full-time students are taking out credit, with many already feeling a ‘heavy burden’ from what they currently owe.
The research suggest widespread money worries amongst students – a trend the charity’s Borrowed Years report identified amongst young people more generally.
The research shows that despite these widespread concerns, only a minority of students are seeking expert advice on money and borrowing. While around two thirds of full-time students aged 18-24 (67 percent) have turned to a parent for advice, only 12 percent have contacted a student money adviser – and just two percent have sought advice from a money or debt advice charity.
The newly-released findings follow the publication of the charity’s Borrowed Years report, which made several recommendations for measures to help young people manage their money and avoid debt problems.
“At a time in life when we would all want them to be flourishing, it is a sad fact that too many students are being weighed down by debt problems.
“As our research shows, this issue goes beyond student loans – which are a very different kind of debt – to significant proportions of students already holding debts on credit cards, overdrafts and to family and friends.
“Students can of course generally anticipate higher incomes later in life, but it is essential that any debt problems are tackled early. Practical reforms to student finance payments would help – and we also need universities, students unions and advice charities to work together to do more to raise awareness of the free advice that is available.
National Debtline offers free advice at www.nationaldebtline.org or on 0808 808 4000, Monday to Friday 9am to 8pm and Saturday 9.30am to 1pm.