Individuals across the country have a combined credit card debt of £70 billion and local businesses here in the North East are struggling too. 2018 has already seen Tyneside based energy provider, Future Energy, cease trading. They’re the second energy provider in the country who have shut their doors in the past 12 months, and it’s not just the energy industry being hit by mounting debt. Students across the North East are some of the most financially worse off people in our community and it’s advised that they look for ways to address their money and debt issues before they spiral out of control.
Why are students struggling?
The BBC reports that student debt in the UK has risen to £50,000, so it’s no surprise that when a student graduates from university they estimate that it will take them 11 years to repay their student loan. The average age of a graduate is 25, meaning, for most, it’ll take them until they’re in their mid-30’s to pay back their debts. At this age, they’ll likely also be considering starting a family, as well as affording rent or mortgage costs to cover. Therefore, it’s no wonder that students in the North-East regret their decision to go to university and don’t believe that university has helped them get to where they are in life now.
How to manage debt
If you’re struggling to pay off your student debt, long after you’ve graduated from university, then debt management may be the way forward. Utilising a debt management plan allows those struggling with their monthly repayments to reduce the monthly amount via an non legally-binding informal agreement. One of the main benefits of a debt management plan is that your monthly repayments are based on what you can afford to pay once other outgoings have been taken into consideration.
For those in the North East who decided the debt associated with a degree was worth it, but are now struggling to pay their debts back, debt consolidation may be the best option. Debt consolidation allows you to have just one monthly repayment and one interest rate to keep on top of, rather than multiple repayments at different rates, being paid on different dates. This method also helps to protect your credit score as the less payments you have to track, the less likely a missed payment or payment problem will occur.
Students across the North East are being hit hard by mounting debt which they often carry with them long after leaving university. Therefore, it’s important that those who are struggling take steps to manage their debt to ensure a comfortable and secure future.