Students good with credit cards
Students are notoriously good at getting into a debt and why wouldn’t they be?
Students good with credit cards
Over half of all UK students choose to pay off their credit card balance in full every month.”
They are offered overdrafts as soon as they sign up for a student account and are loaned large amounts of money by the government to study. Then of course there are all the banks offering them special ‘student’ credit cards.
However, the idea of the struggling student getting into huge amounts of credit card debt might soon be a thing of the past.
Paying it off
New research by the Association for Payment Clearing Services (APACS) has shown startling figures regarding student debt, with over half of all UK students choosing to pay off their credit card balance in full every month.
Furthermore, having responded to warnings regarding credit card debt only 22% of all UK students now actually own a credit card compared to 64% of people nationally.
David Burroughs, a History student at Warwick University said: "I don't have a credit card for the same reason I avoid the mighty overdrafts offered.”
“I know I'd end up spending it all, and not on the most sensible of purchases. Although that’s just my feelings on it... everyone I know has either an overdraft or a credit card at Uni."
The gender gap
The APACS research also showed some interesting differences in spending patterns between men and women. While men aged between 16 and 24 withdraw £2,821 a year through 86 visits to cash machines, on average women withdraw a couple of hundred less and according to figures, they only visit cash machines 70 times a year on average.
Where male and female students spend their money was also revealed to be different. While male students average 63 payments in supermarkets every year, women average a higher number at 77 payments.
Male students also seem to prefer eating out. The average spend for a male student in restaurants, cafes and snack bars per year is £400, while women only spend £218 in the same places.
Clothing is another place where the credit card and debit card statistics varied between genders. Shoe shops in particular were receiving on average £83 a year from female students, but only £22 a year was spent in them by male students.
Electric retailers were also seeing more money from women. Men on average spend just £66 a year on electrical items compared to £90 by their female counterparts.
Keeping track
Students are listening to what banks and family members are telling them when it comes to dealing with their finances, so while over half are paying off their credit card balance every month, many more are also turning to internet banking to keep track of their finances, or using telephone banking.
Just under half of all male students use telephone banking or the internet to control their finances and 34% of women do the same.
Mr Burroughs agreed that internet banking was popular with students: “I use Internet banking and some very questionable maths in my head to make sure I can afford things.”
Written by Max Jennings ©
