Increase In Students Taking Out Credit Cards

Fri, 29 Aug 2008

One in three students in the UK has access to a credit card while at university, a new report has found.

According to a study by Halifax, 37 per cent of students take out credit cards to help manage their finances, with the average balance currently standing at £219.

However, the findings also showed that students were still far more likely to have a loan (80 per cent) or an overdraft facility (64 per cent) than a credit card .

Furthermore, the report found that students were more likely to use cards for their functionality and the added security, rather than as a source of debt .

Virgin Money recently suggested that parents might need to upgrade their home insurance policy to cover the expensive items that graduates typically return home from university with, such as laptops, iPods and games consoles .

Company spokesman Grant Bather said: "Many students will have built up quite a collection of valuable items over the course of their degree ."

"While some may have little monetary value, others such as laptops can be expensive and should be properly insured."
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