Student Financial Incentives Are Diminishing In Numbers
The once obligatory student credit card and overdraft facilities with a number of freebies and added extras have been shelved by many financial companies for the time being. Slowly but surely more and more basic financial incentives are being taken away from the student market, often replaced by free cinema tickets and the like. So what is going on?
The credit crunch has taken in all areas of the economy, even the student market which has been a great area for future investment by the banks. While the free cinema tickets catch the eye, gone are the iPods and many overdraft terms have been changed with interest rates increased and free overdraft amounts reduced.
A number of reports have highlighted the current plight of students with many leaving education with over £20,000 of debts and some struggling for employment. The current economic downturn will also see the number of high paid employment positions fall dramatically over the next 12 months, forcing more students to take less well paid jobs.
This then put pressure on a student's ability to repay their debts, something which the banks are only too aware of. While the famous student credit card offers will return at some stage, they may not be available for many in further education at the moment.
Share this..
Related stories
Helpful new tax year facts that could affect you and your money
1. Tax- free savings
In the new tax year you can enjoy a new Personal Savings Allowance which means that, if you have a taxable income of between £17,000 and £43,000 a year, you can earn up to £1,000 a year of interest in savings and current...
Read MoreAndrew Sentance calls for rethink on UK base rates
MPC member Andrew Sentance has today called for a gradual increase in UK base rates as the UK economy, hopefully, moves into more prosperous ground. He is one of the few on the MPC who believe that UK base rates need to rise in the short to medium term to combat the potential problem of inflation as the UK economy, finally, begins to grow. When this gradual increase in base rates would occur remai...
Read MoreGovernment to announce 30% cuts to four departments
09/11/2015 Chancellor George Osborne is set to announce spending cuts of an average of 30% for four government departments. The cuts will be introduced over the next four years and are set to affect the transport, local government and environment departments. Additionally, the treasury has also agreed to reduce it’s spending. Each department has agreed to cut day-to-day spending by 8% e...
Read MoreUK inflation falls to 3%
The Office for National Statistics has today announced a 0.1% fall in inflation for the month of January with the rate now down to 3%. While the fall in inflation is welcomed across the board many had expected the rate to drop as low as 2.7% and there is some disappointment in the marketplace. However, the Bank of England is firm in its belief that the UK rate of inflation is set to fall dramatica...
Read MoreAlistair Darling suggests rate cuts are not enough to refloat UK economy
While Alistair Darling has welcomed the 1% reduction in UK base rates by the Bank of England, he has also reiterated what many people now believe, that interest-rate reductions alone will not pull the UK out of recession. He has called for further increases in fiscal stimulus and as he suggested earlier in the week, the recent £20 billion package may well need to be increased and further revoluti...
Read More