Student Loans

More and more school-leavers are heading to further education, and realising for the first time what it's like to cope with your own finances. With the banks throwing student loans and interest-free overdrafts their way, it's no wonder that the average student graduates with over £10,000 worth of debt.

Going to University isn't cheap, and unless mummy and daddy are well-off, you'll probably need a loan to fund the next few years. The cost of accommodation, books and equipment, not to mention the day-to-day living costs will slowly eat away at your finances.

With careful budgeting and planning student life needn't hound you for years after you've hung up your mortar board. Getting a student loan instead of a regular personal loan will give you lower interest rates and more manageable repayments - which you wouldn't have to start until you were earning over a certain amount.

But while student loans can be a good, helpful source of funding, other sources certainly aren't student-friendly. Credit cards, for example, usually offer you the same interest rates as every other customer, but with a lower limit. There's no leeway when it comes to the repayments; you spend it, you pay it, regardless of your income. If you find yourself struggling to cover everyday expenses, and feel you need a credit card, set up a direct debit for the monthly repayments, and endeavour to pay back the full balance each month. Try setting yourself a personal spending limit which is just under the limit on the card, and stick to it. This way you'll avoid overlimit fees.

Be vigilant about your finances. Check each and every bank or credit card statement which comes in, and keep receipts for everything. If mistakes are made (which does happen), you can spot them straight away and take action. Don't be afraid to point out any discrepancies to your bank. If you can, use an online banking facility so you can keep up to the minute on your financial situation.

Provided you're careful with your spending and budgeting, you shouldn't finish University too far into the red. Consider getting a part-time job which will not only help acclimatise you to working life, but also give you a steady income with which to cover expenses.