Credit and Debt

Overdraft getting out of hand? Bank manager sending you angry letter? Don't worry, it really isn't the end of the world - simply time to cool off the credit card and learn lessons that'll (fingers crossed) stay with you throughout your post-graduate life.

Firstly, if you're beginning to use your credit card for everything from clothes to groceries and your letterbox is choc-full of demand letters, CUT UP YOUR CARD (burial ceremony optional). Interest rates can be as high as 18%, so consider transferring your balance to an interest-free card if possible, and do everything in your power to avoid making the debt any larger.

Be very wary of store cards, they can charge up to 30% interest (APR) and tend to be terrible value. They are one of the easiest ways to run up a bad debt over a short period of time.

Missed payments only serve to increase the interest so don't be tempted to bury your head in a money pit. Write to your creditors and explain that you would like to make smaller monthly payments – they'll probably agree to let you do this as sending in the bailiffs will be more expensive for them.

For debt advice and support:

Citizen's Advice Bureau
www.nacab.org.uk

Consumer Credit Counselling Service
www.cccs.co.uk
Tel. 0800 138 1111 (Mon-Fri 9am-5pm).

National Debtline
Tel. 0808 808 4000

Credit Action Student Freephone Helpline
Tel. 0800 591 084

You should also consider contacting your Student Advice Centre: Don't feel embarrassed - you won't be the first nor the last student to slip into debt.