Leaving uni

The economic downturn has meant that graduate employment opportunities are at an all-time low and yet universities continue to demand higher fees, increasing the debt for students. Most recent figures show that students who started uni this year are set to graduate with more than £23,000 of debt, according to the National Union of Students (NUS).

Leaving university saddled with this hefty sum can seem daunting, but there are a number of ways to make sure you've got enough money to enjoy yourself.

Minimise your outgoings

A simple budget stops too much cash slipping through your fingers. Make a note of what you spend over the next few days to see if there are areas where you could cut back. Everybody has a weak spot, whether it's long mobile phone calls, clothes, CDs, or something you know to be a luxury. 

How much do you need to spend each month? Figure in rent/halls fees, bills, groceries, transport, and direct debits. Then add in enough for a few good nights out; nobody can live like a hermit for long, and feeling deprived and miserable is enough to send most of us off on a spending spree. Factor in an extra 10% on top of that total figure to allow for unexpected expenses.

Spend less, save more

Flash your student card. Signing up for an NUS card can be an excellent way to save money. Many high street shops, as well as gyms and hairdressers, give up to 20% discount upon presentation of this card. Be sure to ask your Student Union about where to find offers in your local area.

Go second-hand

Embrace the student life and get into second-hand books and clothes. You'll find most of the text books you need in second-hand shops on campus, or you can check classified boards for ads from older students. For good quality second-hand clothes, rummage around in a charity shops. Hunt hard enough and you might unearth some real vintage bargains, too.

Bargain hunt

Grocery shopping can become costly, so look out for reduced items, two-for-one offers and money-saving coupons. When shopping for food, avoid expensive and unhealthy pre-packaged meals and opt for fresh fruit and vegetables, instead; healthy eating really doesn't have to cost the earth.

Maximise your income

At the same time, make sure you're getting all you're entitled to. Parental contributions cannot always be reinforced, but some lucky students can sweet talk mum, dad and granny into parting with a little extra cash. Overdrafts are usually free when pre-arranged, but crippling otherwise, so keep the bank manager happy and think ahead.

Look out for college access funds, travel grants (contact your LEA), other supplementary grants, low-interest hardship loans from the Student Loans Company (SLC), sponsorships, and college or charity bursaries (try the college careers library or finance office). Apply for everything; if you don't ask, you don't get.

Set up direct debits

Setting up a direct debit for any regular household and personal bills could save you a few extra pennies. It means that the money you owe is taken out of your bank account on a certain date to pay a bill. A lot of companies offer a discount if you pay through direct debit. BACS (the industry body behind direct debit in the UK) estimates that individuals can save up to £100 a year paying this way.

Beware of extra debt

Some lenders target people with poor credit histories, which may be students gathering debt, and charge very high rates of interest.

If you can't sort out a loan with your bank - or get another high street bank to step in to help - consider postponing taking out a loan, if at all possible.

Also remember that credit cards can be an expensive way of borrowing if you are unable to clear the balance every month.

Serious debts

Some students find themselves getting deeper and deeper into trouble. If you think you're in over your head, first admit that you have a problem and then get help quickly. For more information, try contacting the organisations in the next steps box on the right.

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Updated: 17/10/2011