A tenth of students fall behind on their payments in last six months

AROUND ONE in 10 undergraduate students have fallen behind on or missed payments in the previous six months, a survey from a Government-backed body has found.

Some 11 per cent of students surveyed in April had fallen behind or missed payments on university accommodation, credit cards, household bills or other debts in the previous six months.

The research was released by the Money Advice Service (MAS), a body set up by Government to offer money tips.

The survey was released in partnership with the National Association of Student Money Advisers (Nasma).

It warned that some students could be at risk falling into a “debt spiral”. The report said a fifth of students owe more money in 2018 than they did last year, which it described as “a concerning trend, particularly when interest rates are on the rise”.

A fifth of students surveyed find themselves frequently overdrawn.

Two-fifths of those who have been overdrawn previously have used an unauthorised overdraft, meaning they may have faced additional charges and fees.

Joe Surtees, policy manager at the MAS, said that while most students show signs of being financially capable, “a significant minority are still struggling with their finances, which may increase the chances of falling into a spiral of debt in the future”.

Wendy Bainham from Nasma’s financial capability committee said: “It can be a challenge managing money as a student.”