BANKRUPT AND UNEMPLOYABLE
MyEquifax warns graduates of the implications bankruptcy can have on their job prospects
Universities are back in full swing and a new generation of graduates is facing mounting debts. The Department of Trade and Industry (DTI) has recently reported that individual bankruptcies are up 27.5% on a year ago, to 11,915, with an increasing number of graduates seeing bankruptcy as a way out of their debts*. However, MyEquifax, the only instant, online credit information provider, is highlighting the negative impact bankruptcy can have on a graduate’s ability to get a job.
Neil Munroe, External Affairs Director of Equifax plc, explains, “Borrowing and debt is a fact of university life for young people today. However, bankruptcy seems to be quickly becoming a part of graduating. Since April 2004 bankrupts in England and Wales have been able to come out of bankruptcy faster than previously as a result of changes in the law. But many do not realise that bankruptcy remains on their credit file for six years.
This is an important fact to bear in mind when it is now common for many large companies, especially those in the financial services industry and those working in areas that require high levels of security, to use credit information as part of an individual’s reference. Bankruptcy on an individual’s credit file could have a negative impact on the employer’s decision.”
With more companies using credit information as part of the recruitment procedure**, MyEquifax recommends that graduates get a copy of their credit report before they start the application process. This will enable them to check that all the information relating to their credit status is completely accurate and up to date. By knowing what information is on their credit report, graduates will also be able to explain any incidences of late payment that might have occurred during their student days, when going through the recruitment process.
Munroe continues, “According to the National Union of Students (NUS) the estimated average student expenditure for academic year 2005/06 (39 weeks) is £10,493 in London and £8,810 outside London. With Barclays Bank recently reporting that the average debt for those finishing university this year is over £13,000, it is vital that students and graduates plan their financial future carefully. Whilst bankruptcy might seem like an easy solution, it can seriously hamper an individual’s chances of establishing financial independence and getting on the career ladder.
“Graduates need to understand how their credit file affects their day to day lives. By obtaining a copy of their Credit Report they can see what lenders and employers see to make those life-changing decisions. It also puts them in control of their finances and in a better position to build a brighter future.”
For just £14.95 consumers can obtain a copy of their Credit Rating, which includes their Credit Report, instantly, online at www.myequifax.co.uk
*A Student Loan cannot be discharged as part of an individual declaring themselves bankrupt
**A prospective employer must obtain permission from the individual to review their credit information
