Tuesday 11th of August 2009
The debt management burden faced by many students could be set to rise over the coming years, according to price comparison website uSwitch.com.
Statistics from the site claim that the average student faces a need for debt management on outstanding borrowing of £14,161.
However, this is expected to grow to £26,400 over the coming seven years, uSwitch.com adds.
The site adds that entering an unauthorised overdraft can have a substantial impact on the amount a person owes.
Rates currently charged on unauthorised overdrafts range as high as 29.99 per cent, averaging 20.54 per cent in uSwitch.com’s analysis.
People who owe large sums - whether they are students, recent graduates or long-time education leavers - could seek IVA advice to help resolve their financial difficulty.
With professional IVA advice, it can be possible to write off between 60 and 70 per cent of large debts owed to different lenders, with a schedule put in place to repay the rest.
By Rachel Powell
