New research has revealed that British students have an average of £3,781 worth of debt as a result of using more than one student bank account simultaneously.
According to the study conducted by VoucherCodesPro, 58% of the participants in the survey revealed that they had more than one student account. Of the remaining respondents, 17% disclosed future plans to open another account and 24% claimed they were likely to increase the overdraft limit on their current account at some point in the upcoming academic year. Researchers compiled the results and found that, on average, those with more than one student account have an overdraft of £3,781.
The website conducted the study as a part ongoing research into the financial circumstances of Britons; particularly in relation to student spending. Chief Executive Officer of Voucher Codes Pro, Nick Swan, said: “Being a student can obviously be a pricey time, but it is worrying to see the disregard that students seem to have for their finances.”
When asked, ‘How many student bank accounts do you currently have?’ 35% claimed they had one and only 7% said they had none. In total, 2,152 attending their second year at UK Universities took part in the survey.
Nick Swan, who also founded Voucher Codes Pro in 2012 continued: “Whilst it may seem worth it to rack up a load of debt now, it can certainly impact your future. I would also advise students to make sure that they check the small print of accounts and contracts to ensure that they cannot be caught out.
“Terms and conditions of accounts can dictate that banks can withdraw the overdraft and sell the debt to debt collectors, so you must be wary of that. It could also have a big impact on your future credit rating, tread carefully. There are plenty of other ways to make your own money go further, rather than having to rely on debt. Saving is the number one place to start.”