Being in debt has become a way of life for many, with student loans encouraging people to take out further personal loans and credit cards in the future, claims a financial expert.
According to the website Moneyfacts, high levels of debt have become socially acceptable with young graduates starting out on their professional lives having already racked up debts of between £11,000 and £13,000.
The student loan system was introduced in 1998 and now most British students borrow money from the government-backed Student Loans Company to support their studies.
Samantha Owens from the website says that a culture of debt is being created because,"borrowing starts from a relatively young age for a lot of people".
"People are just getting more used to being in debt," she added.
Research by the personal loans provider Barclays Bank has also recently estimated that with top-up fees about to be charged on top of the usual university bills, by 2010 the average student debt could reach up to £33,700.
If graduates need to borrow money after their university days, shopping around for the best value loan or credit card could help keep their finances under control.
Student loans make personal loan debt the norm, says expert
Student loans make personal loan debt the norm, says expert
Fri, 05 May 2006
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