How to avoid or manage debt

Avoiding Debt:

• Limit your borrowing to a few sources. Spreading debts around too much makes it difficult to keep track of them and can only create more problems later on. Do not borrow to pay off existing debts.

• Draw up a budget plan and stick to it

• Try to limit your trips to the cash machine to once a week- it is too easy to lose track of how much you are spending

• Be cautious about how much you borrow on your overdraft - even if it is interest free

• If you are taking out a student loan, you will find it easier to budget if you take the loan in 3 instalments.

Managing Debt:

First - Rent - you must have shelter
Second - Council Tax arrears - or you will be taken to court
Third - Electricity and gas
Fourth - Water
Fifth - Hire Purchase

When looking at expenditure don't forget occasional payments - such as for haircuts.

• Respond to all letters and demands - try to keep on good terms with your creditors. Keep copies of all correspondence and note down any phone calls with dates and the name of the person you spoke to.

Useful Contacts

Your bank branch student officer
The University welfare officer
Your local Citizens Advice Bureau
National Debt Line - 0808 808 4000
Consumer Credit Counselling Service - 0800 1381111

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.