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STUDENT LIFE… LASTING MEMORIES – OR LASTING DEBTS? TOP FIVE FINANCIAL SURVIVAL TIPS

Students in debt! Saddled with debt! Can’t manage! All these have become the familiar headlines surrounding students. A recent report** showed that most would be saddled with an average debt of nearly £15,000 by the time they finish their studies. That’s without having to find the funds of around £30,000 to fund a three-year degree course.

It is a staggering fact that only 20% of young people aged 18 – 24 actually keeps a budget, with 1 in 5 not knowing how much they have in their account to within £100. But what’s worse is that the trend doesn’t stop there, with the debt cycle seeming to continue long after graduation.

To help students start off on the right track and avoid the potential financial nightmare of university and beyond, GE Money, one of the UK’s leading providers of consumer finance, has teamed up with Credit Action and CCCS (Consumer Credit Counselling Service) - two leading debt advice charities – and created the money education website www.moneybasics.co.uk, which has extensive money management information. There’s help also a new budget calculator to help students to look at what they can save.

With a better knowledge and understanding of their finances it is more than possible for students to get to the end of their course in a good financial state – to help www.moneybasics.co.uk have come up with the top five financial survival tips to help students keep on the right side of the bank manager!

How not to spend it:
  1. Keep a budget
    Make sure you do not fall into this lack of financial awareness trap. Simple budgeting will ensure that you only spend what you can afford to.
  2. Keep debt as low as possible
    Shopping around for the best deals. Trying to keep debt just to the student loan is a good target.
  3. Maximise income
    46% of students now work during the term time to pay their way through university. Working while at university is great experience but it is crucial to make sure you manage your time so that your studies aren’t adversely affected by your job, but with careful time management you can ease your financial situation as well as adding to your CV!
  4. Minimise Expenditure
    It is easy to arrive at university and very quickly spend your way to financial hassle. Cut down on those nights out, curries and kebabs and instead try to cook for yourself more.
  5. If in doubt, get help
    Talking about our financial situation can often feel like an embarrassing thing to do, particularly if we are struggling to make ends meet - don’t ignore the problem. If you want to speak to someone you can contact Credit Action ( www.creditaction.org.uk) in confidence, or you can talk to your university welfare staff.

    Chris Tapp, Associate Director, Credit Action says,
    “All too often we simply ignore money problems and hope that they’ll go away, but they don’t. Worries about our cash situation can also have big knock on effects on our social life, relationships and even health. Students shouldn’t let money worries spoil their time at university. By getting some really basic help and advice you’ll be amazed at the difference you can make, not just to your wallet, but to your whole student life.”

    Amongst all these seemingly gloomy figures there is a ray of light - being a student is still one of the best times of your life, and with a bit of financial prowess should leave you with lasting memories…. not lasting debts!

    Check out MoneyBasics for more money-savings tips for students.

Notes to editors

In the UK we now spend more on eating and drinking out and buying takeaways than we does on cooking for ourselves at home, so it is little wonder that government figures show that as at the end of September 2006 the total UK personal debt stood at over £1,25bn, and is continuing to rise at a whopping £1 million every four minutes. Consumer credit lending was up by 6.6% to £211.8bn in August, and total secured lending on homes increasing by 11.2% in the past 12 months to now top the £1 trillion mark.

GE Money

GE Money is the new trading name of Consumer Finance (GECF), one of the world’s leading consumer finance services to consumers, retailers and auto dealers. Headquartered in the US, GE Money operates in 48 countries around the world and has assets worth over $150 billion. In the UK, GE Money offers credit cards, fixed-term retail credit, loans, and auto finance. GE Money also operates retail branded credit cards for fashion retailers, department stores and supermarkets. Further information about GE Money can be found at www.gemoney.co.uk.

www.moneybasics.co.uk

MoneyBasics is a money education website with money management information and tips that has been set up by Credit Action, CCCS and GE Money. It offers independent information on topics such as budgeting, plus case studies of people who are managing to deal with their debt problems.

The Consumer Credit Counselling Service (CCCS)

CCCS is the UK’s leading debt charity primarily helping people with multiple debt problems. People can contact CCCS Monday – Friday 8am to 8pm. Free phone helpline number 0800 138 1111
Registered Charity No 1016630

  • 2006 Natwest Student Money Matters Survey**
  • Debt stats – source: www.creditaction.org.uk/debtstats.htm
  • Eating out stats – source: Office of National Statistics August 2006
  • Debt Figures – source: Bank of England

For further information contact: Robert Buller
External Communication Manager
GE Money
6 Agar Street
London WC2N 4HR
Tel: 020 7853 1831
Fax: 020 7853 1910
e-mail: robert.buller@ge.com



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