How to Avoid Unnecessary Debt at University

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Financial management and the ability to budget is one of the many life skills you’ll need to learn at university. These are a few of the things you can do to avoid unnecessary debt while you’re there.

Avoid Credit Cards

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When you’re running out of money towards the end of the term, it’ll be tempting to apply for a credit card; after all, you’ll be able to pay it off when your next loan comes through, right? That might sound like a simple solution, but if you’re running out of money now, you’ll probably have the same problem at the end of next term, but you’ll also have a credit card bill to pay.

Before you know it, you’ll only be able to pay the monthly interest payments on the credit card, or worse still, you’ll be accumulating more debt. The key is to not apply for a credit card in the first place. If you’re not able to get by on your current budget, perhaps get a temporary job, work more hours at your current job or ask friends or family members for a loan.

Buy Second-Hand Textbooks

University textbooks are the most expensive books you’re ever likely to buy. You’d normally never think about spending £30+ on a book, but at university, you’re often left with little choice. The key to reducing this ridiculous cost is to buy used books from past students for a fraction of the price. You’ll often see old books advertised on message boards online and in the university buildings.

Cook Your Own Food

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Another life skill you need to learn at university if you’ve not done so already is how to cook. You don’t need to be rustling up restaurant quality meals every night, but you do need to know the basics. Surviving on takeaways alone is an expensive habit and a sure-fire route to debt.

Understand Your Expenses

One approach some students take to managing their finances is simply not to look at their bank balance. The ‘what you don’t know can’t hurt you’ technique is extremely popular, but not particularly successful. To avoid unnecessary debt, you should know exactly how much money you have, what bills you have to pay and when they need to be paid. This will help you budget for the fun things like nights out but also ensure you don’t pay additional charges when payments cannot be made.

Mike Smith is a leading insolvency expert and one of the founders of CompanyDebt.com

For more money tips, head to our dedicated money section.

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How to Avoid Unnecessary Debt at University

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