Credit crunch could ‘see students struggle’

The effects of the credit crunch could eventually see students struggling as a result of the financial constraints placed on their parents.

Many students face debt management issues soon after graduating and most rely to some extent on parental help with money and as the economy suffers mums and dads will be less able to offer assistance.

David Malcolm, head of social policy at the National Union of Students, said: “If parents are in a situation where they are suddenly paying more on their mortgage, more students will find that their parents won’t be able to support them.”

These concerns have not yet been evidenced by studies in the UK but Citigroup in the US has stopped offering loans to students and fears are rising that economic problems could soon have an impact on young Britons.

More and more families are being forced to house three generations under the same roof as a result of the debt management problems, a recent study from Prudential suggested.

By News Team and is filed under Creditor Behaviour, Debt Management, Debt and Young People, Personal Debt.
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