Top of the credit class

Graduates may grumble about the level of borrowing they had to make to get through university and how much they now have to pay back.

But new research has shown that juggling student debt, credit cards and interest free overdrafts has created a generation more awake to the dangers of credit than their parents ever were.

A survey carried out on behalf of online bank Egg has shown that almost half of students ñ 47 per cent ñ think that university has fundamentally changed their attitudes to debt, and two fifths said they were determined to avoid ‘serious debt’ again.

“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,” Mark Nancarrow, Egg chief financial officer told My Finances.

“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,” he added.

Sixty per cent of students said that they would still use credit cards, but 42 per cent said that the experience of managing their money at university meant they would now use credit responsibly.

Three quarters of the students polled said that they would be careful to spend only what they earn after graduating. Students where philosophical about the debts accrued through college, with 73 per cent saying that they were unavoidable in higher education.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *