STUDENTS OF GREAT BRITAIN DIVIDED WHEN IT COMES TO MANAGING DEBT
MyEquifax reveals that students studying in Wales are more likely to declare themselves bankrupt
London 31st May 2005 - MyEquifax, the instant online credit information provider, surveyed over 1,500 students through the National Union of Students (NUS) website on their financial habits. The results showed that a whopping 36% of respondents in Wales said they would consider declaring themselves bankrupt if they were struggling to repay debts compared to only 13% in the South.
Neil Munroe, External Affairs Director of Equifax, comments, “Even though the bankruptcy laws have changed recently some students have the misconception that this is an easy option to rid themselves of debt. It is great to see that well over a half of students in the North, South, Scotland and Wales would not consider declaring themselves bankrupt as it can affect their credit history, future job prospects and much more” concludes Neil Munroe.
“Unfortunately rising costs of living do put more pressure on students but the earlier they start financial planning the easier they can manage the burden. We are therefore advising students to obtain a copy of their Equifax Credit Rating from www.myequifax.co.uk as this will show all their credit agreements clearly and help them prioritise repayments. It will also enable them to understand the information that lenders look at when making credit decisions.”
Key Survey Results
The MyEquifax survey revealed some very interesting attitudes to finances amongst students:
- Only 19% of students in Wales didn’t save up prior to university compared to 38% of students in Scotland
- Under a quarter in each region managed to save over £1,000, even though the average graduate debt in 2005 will be £13,500*
- 65% of those students in the North did this through part time employment. Others relied on inheritance and other family generosities such as birthday and Christmas money.
- Only 10% of students in Wales worked throughout university to support themselves compared to 36% in Scotland.
- Parents are cited as the most trusted source of financial advice with over 50% in each region preferring them, compared to student advisors, banks, friends, partners or tutors.
- Across all regions cigarettes were ranked as the first vice to give up when finances were tight. This was closely followed by alcohol.
- 44% of respondents in the North are optimistic about their debts and believe they will clear them within one year of leaving university, however 48% of respondents in the North are more realistic believing they will settle their debts in two to ten years.
- 47% of students studying in Wales hide the extent of their debt from their parents, even though 83% of respondents said they rely on their parents for financial advice. This compares to only 28% of students in the North hiding their debt from their parents with 74% relying on financial advice from them.
“I was surprised that 42% of students in the South were most worried about student loan debts whilst only 3% worried about their credit card repayments, even though a student loan accrues far less interest than credit card debt.”, confirmed Neil Munroe. “Prioritising paying back high interest and secured loans is paramount to managing your finances through university.”
For just £11.75 consumers can obtain a copy of their Credit Rating, which includes their Credit Report, instantly, online at www.myequifax.co.uk
If you are looking for commentary on this subject, Equifax can provide consumer credit information experts who have extensive experience on this issue.
If you would like to arrange an interview please contact Cecile Stearn, Sarah Samee, Claire Foster or Wendy Harrison at HSL on 020 8977 9132 or email cecile@harrisonsadler.com
Regional Breakdown of MyEquifax Student Survey Key Findings
| How much did you save for University? | ||||
| North | South | Scotland | Wales | |
| Less Than £500 | 23% | 30% | 21% | 31% |
| £500-£1000 | 29% | 16% | 15% | 29% |
| Saved £1000 | 23% | 22% | 23% | 17% |
How did you save? |
||||
| North | South | Scotland | Wales | |
| Didn’t Save | 25% | 30% | 38% | 19% |
| Part-Time Job | 65% | 52% | 40% | 57% |
| Birthday/Pocket Money | 21% | 30% | 17% | 29% |
Do you receive any financial help whilst at university? |
||||
| North | South | Scotland | Wales | |
| Parents | 52% | 54% | 38% | 50% |
| Job | 30% | 28% | 36% | 10% |
What is your biggest debt worry? |
||||
| North | South | Scotland | Wales | |
| Student Loan | 29% | 42% | 26% | 38% |
| Day to Day Living Expenses | 34% | 31% | 38% | 29% |
| Paying Rent | 17% | 15% | 6% | 19% |
| Bank Overdraft | 12% | 8% | 13% | 2% |
| Credit Card Repayments | 5% | 3% | 9% | 7% |
Where do you go for financial advice? |
||||
| North | South | Scotland | Wales | |
| Parents | 74% | 69% | 59% | 83% |
| Bank | 49% | 52% | 57% | 64% |
Do you hide the full extent of your debt from your parents? |
||||
| North | South | Scotland | Wales | |
| Yes | 28% | 39% | 40% | 47% |
| No | 72% | 61% | 60% | 53% |
Would you ever consider bankruptcy? |
||||
| North | South | Scotland | Wales | |
| Yes | 18% | 13% | 28% | 36% |
| No | 82% | 87% | 72% | 64% |
How much debt did you have when you graduated? |
||||
| North | South | Scotland | Wales | |
| £1,000 -£1,500 | 28% | 42% | 25% | 38% |
How long do you think it will take to pay off your debts? |
||||
| North | South | Scotland | Wales | |
| 1-3 Years | 44% | 24% | 40% | 26% |
| 5 – 10 Years | 48% | 42% | 27% | 40% |
*Figure sourced from the 11th Barclays Annual Graduate Survey
