With many leaving university with thousands of pounds worth of debt, students have been urged to consider a number of factors when taking out loans and credit.

James Thorpe, a spokesperson for HSBC, said that students often need to access cash with a certain degree of "flexibility".

However, while students themselves ought to monitor their finances, banks have a responsibility to ensure they do not lend more money that they can afford, Mr Thorpe added.

"A student is borrowing money from a bank because they are unlikely to have a strong income. One of the things which students need to factor in now is borrowing huge sums for other areas," he remarked.

Earlier in the month, James Falla, managing director of debt consultancy Thomas Charles, said that students may rely on large overdrafts and credit cards but often find that they do not have a great deal of disposable income when they graduate.


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