University debt revolutionises thinking

Wednesday, November 2, 2005

University changes the way many students think about using credit and spending money in the future, according to new research.

Egg, the online financial services provider, has found that almost half of students say the way the think about spending has fundamentally changed since being at university, and that debt from their studies has made them more credit conscious.

"Our research clearly shows that many students, already experienced in what they perceive to be unavoidable debt, represent a shift in attitude towards spending and debt," said Mark Nancarrow, chief financial officer at Egg.

"Whilst still intending to use credit in the future it appears that the graduate of the noughties intends to adopt a responsible attitude towards credit, rejecting the 'have it now' attitude associated with the eighties and nineties."

The results of the survey showed that after having finally paid off what they consider unavoidable university debt, 42 per cent of the over-1000 students quizzed claimed they would use credit responsibly and 48 per cent said they would be reluctant to spend money that was not theirs.

The interviewees also felt that the financial service providers themselves need to do more; 73 per cent saying that tools and services to help customers avoid unnecessary debt need to be improved.

Recently, the government has launched an advertising campaign highlighting the loans available to students to cover the costs of tuition fees, as university becomes more expensive.