Student loan a mortgage 'barrier'
Published on : 04/06/2007
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Students should make sure that their debts don't mount up too badly at university - or they could face difficulties when trying to secure a mortgage or other types of credit later on in life, according to one expert.
Chris Tapp, of national money education charity Credit Action, says that getting too weighed down with debt problems at an early age can mean that you have trouble getting a mortgage in later life - and can additionally act as a real barrier when attempting to enter a career in law or accountancy.
"If somebody at quite a young age struggles with a debt problem and is forced to go into an IVA or bankruptcy or something like that, then that effects their credit rating over the next six years, their ability to get a mortgage, their ability to work in certain types of profession - if you want to go into the legal profession or accountancy for example, and you've previously been declared insolvent then that can be a real barrier," Mr Tapp commented.
The Credit Action expert went on to say that youngsters should make sure that they avoid the culture of debt that goes "hand in hand" with student loans - and added that he "wouldn't be surprised" if the number of students declaring themselves insolvent was on the rise.
