How to manage your debts

It is easy to spend money quickly, but if you get into debt it's usually much harder to pay it off. A debt created from an overdraft or credit card can take months or even years to pay off, so imagine an overdraft, loan, and debts from a credit card and half a dozen store cards. With careful budgeting, you can avoid this trap by planning your spending - that way you know your incomings, outgoings and how much you have left to play with, so you are never caught off-guard with a huge bill that you can't pay.

If you do run into problems, try to economise - work out what you can live without or what you can cut back on so that you make savings and avoid getting into too much debt. Many people believe that taking out yet another loan to pay off previous debts will help, but this can make matters worse as you could end up paying more interest on the new loan. The best way to tackle debt is to set up a payment plan: put in a realistic amount each week or month and work out how long it will take to pay it off. This way, you can avoid the stress of debt, and focus on studying.

For free confidential advice about how to deal with debt problems, you can use the National Debtline website, www.nationaldebtline.co.uk or contact the Citizens Advice Bureau, www.citizensadvice.co.uk.