Card Surcharges to be Banned
21st Jul 2017
New research from Future Finance has found that a third of students rely on overdrafts, credit cards and payday loans to cover their expenses at university.
According to the study 70% of students have said that their government loan does not cover their costs, so they are having to turn to alternative sources to keep themselves afloat.
The study also raises concerns about the financial acumen of students suggesting that they may not be all that well placed to be landing themselves in high interest debt. 40% of those surveyed did not know what APR meant, yet 63% maintained that they had a good grasp of finance.
The CEO of Future Finance said of the research "It is worrying that significant numbers of students rely on credit cards, payday loans and overdrafts without even seeing them as debt. For many students, going to uni is the first time they'ÃÂÃÂre required to stand on their own feet financially. It's a big change in their life and it can be a steep learning curve."