Students need financial advice

Young people need to be given more advice on which financial products to choose, according to the National Union of Students (NUS).

A spokesperson from the organisation has suggested that the wide range of credit cards and loans available to students can often lead to debt problems.

She suggested that banks often "lull" young borrowers in with free gifts, which can often overshadow important financial issues such as interest rates and repayment plans.

"The advice we give is that students shouldn’t look at the gimmicks and they should compare like with like, with interest rates in particular," the representative commented.

According to the expert, leaflets and financial advice do not compare to the impact of "being sat down and [encouraged to think about] about how to handle money".

Students leaving university this year are expected to face a collective debt of £3.2 billion – up 167 per cent in the past ten years.