Avoiding the Student Debt Trap

Being a student seems to be synonymous with being broke all the time. More so than ever, students have to learn how to manage their money very quickly in order to limit the damage on their overall student debt. We talked to Anne Marie Blake, head of student and graduate banking at NatWest, who offers her top tips on how manage your money better as a student.

student debtHaving direct access to a dedicated student banking manager can make a real difference. Their understanding and experience of students individual needs can really help Freshers prepare financially for life at university and avoid many of the pitfalls, which can lead to a financial headache. NatWest student banking managers have put together the following tips for freshers on how to try and avoid the student debt trap while at University:

Tips on avoiding student debt

· Live in university accommodation for as long as possible - it can be cheaper than renting privately.

· Shop for food with friends - buying in bulk can save money and means that you can take advantage of the 'buy one get one free' offers.

· Students can claim lots of discounts. Make sure you use your NUS or ISIC card and also look in your Student's Union for a number of one-off offers that are available.


· Don't rush out and buy every book on your reading list on the first day of term, there will be lots of opportunities to buy second hand books

· If you do work, check whether you have to fill in a form P38(S) so that tax will not be taken off your earnings.

· Ask other students how much you will need to pay for bills. Complete a budget planner and regularly review it to see where your money is being spent and if it is deviating from the budget.

· Record all of your transactions as you spend them so that there are no surprises when your bank statement arrives.

· If you do find yourself struggling, talk to your Student Adviser as soon as possible - don't sweep cash problems under the carpet.

· Finally, it's easier said than done, but don't run up a massive debt in the first couple of months. Going out every night in the first term may make you popular but could mean a serious lack of social life later in the year.