Parents should educate kids on avoiding debt

Mon, 22 Aug 2011

Cash-strapped parents struggling with debt can still be of assistance to their kids as they head off to university.

While they may not have the money to offer a 'bank of mum and dad' facility to their offspring, those with debt can use their own experiences to guide their children on the right financial path, it has been claimed.

According to lovemoney.com, it is essential that students get the right advice to stop them becoming caught up in Britain's debt spiral.

Head of consumer finance at the site Ed Bowsher explained that while many parents do not have spare cash to hand their children at university, they can still help by acting as financial advisers.

Following the recent publication of A-level results, there were a record 384,649 applicants accepted into university or college this week.

Mr Bowsher said that to avoid the prospect of unmanageable debt, these people should "borrow as little as they can and at as low a rate as they can".

"Student loans from the government are pretty much the cheapest way to borrow, so students should always borrow first from the government before they consider other options," he added.
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