STUDENTS are in an expert’s debt after being given sound advice on how to avoid the pitfalls surrounding money management.
During Debt Awareness Week, sixth formers at The King’s Academy, Coulby Newham, were given an insight into personal budgeting as they prepare for life beyond the classroom.
North Yorkshire trustee of the national charity Community Money Advice, Susan Robinson, told the politics and economics students of the dangers of money mismanagement at a personal level and how easy it was to fall into debt.
“I have seen debt lead to ill health, relationship breakdowns, domestic abuse, prison and suicide,” said Susan, who also works with the New Life Baptist Church in Northallerton.
“I was just leaving the office and the phone went one day. I almost didn’t pick up but then thought I ought to. There was a man on the other end who told me he had his dressing gown cord around his neck and I was the only person he could think to ring. We talked for an hour and he is alive today – that is how desperate people become.”
She said in her time as a debt counsellor she had never met anyone who was in arrears because they had gone on a wild spending spree.
“It is more likely to be because of the death of a loved one, or the loss of their jobs, or they have learned bad spending habits from their parents,” she said.
“In personal, health and social education (PHSE) young people learn about sex education and issues around drink and drug abuse but nothing about budgeting or bank accounts. Yet everyone will have to handle money, while few become drug addicts.”
She told them that when she started working in banking, there was a culture that people could not have what they could not afford to buy. Today, everyone wanted everything now and worried about paying later, she said.
Loans were much easier to come by which made debt more difficult to control. Mrs Robinson also warned about payday loan companies with their high interest rates and logbook loans, where money is lent against the security of the borrower’s car.
“Becoming debt free changes people’s lives, but it requires commitment, determination and a change in spending habits,” she said.
Politics teacher Jenni Yuill said: “We hear about the country’s debt crisis again and again so it was great to meet someone who works with the issue on a daily basis.”
Sixth former Paige Cope added: “Debt is something we are all becoming increasingly aware of as we think about going to university. The prospect of student loans and having to manage your money is a bit scary so the timely advice we have been given today has been invaluable.”