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If you ask most 18 - 24 year olds what their life's most pressing worries
are, chances are most of them will cite student debt somewhere near the top.
However, while students continue to depend on large student loans to get them
through their higher education, their rates of credit card usage are
considerably lower than the national average: while 66% of Britian's population
own a credit card, only 24% of 18-24 year olds do, and even fewer use their
credit cards actively.
APACS, the UK Payments Association, has recently launched a credit card advice
guide for students, called "Cards and Students", which aims to provide them with
key facts and tips on how to manage responsible borrowing whilst at university.
Along with full financial advice for new students, "Cards and Students" provides
tips towards achieving good financial management; advice on protecting against
fraud; and a list of ten questions to ask before choosing a credit card.
APACS initiative seems to have met a certain need in the student market; as the
cost of living continues to spiral and the advent of top of fees this year
causes even more financial pressure building up, this kind of scheme of
financial advice targeted at a social group who sorely needs it is definitely a
breakthrough. Sarah Quinn, APACS' Director of Communications comments:
"This advice guide is designed as a quick and easy checklist for students. It
provides information they need to make informed decisions about their personal
finances and clearly explains the various card payment options available to
them.
“Nowadays, most students expect to be in debt when they graduate and whilst it
might be impossible to avoid student loan debt, getting a handle on managing
your finances can make the world of difference. We have an important role to
play in educating all people, not just students, about responsible borrowing and
the benefits and risks of using plastic cards."
While the rate of student debt is growing rapidly, students in Britain may
perhaps be thankful that the national average student credit card usage in the
UK is much smaller than that in the United States; a survey by Young Money
magazine in 2002 concluded that the average American student owned three credit
cards: at least 78% had at least one, and nearly 32% had four or more credit
cards. Although the average British student's credit card debt is not quite this
staggering, it does indicate the general direction in which credit card usage
can spiral unless brakes are imposed.
While APACS guide gives much needed advice, a large number of credit card search
and credit card comparison, such as Moneynet exist to provide consumers with
enough data to make an informed choice about which credit card will be best for
them. Britain's leading credit card companies, like Barclaycard also offer
special student credit card packages, which often include deals that are
designed to ease their financial burden, such as favourable payment plans on
laptops and discount vouchers from a variety of high street shops.
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