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Last updated on April 17, 2014 at 1:21 EDT

Frugal Freshers Ditch Booze for Books

September 30, 2011

LONDON, September 30, 2011 /PRNewswire/ –

Despite university students planning to spend more than a billion pounds
on alcohol this year, the threat of a double-dip recession is making
Britain’s freshers trade the bar for books, finds new research from Credit
Confidential [https://www.creditconfidential.com ].

The study reveals the economic situation has brought about dividing
lines between first years and older students, with new starters slashing
their alcohol spending by over 40 per cent compared to freshers in previous
years.

Rising inflation and worsening graduate prospects has changed freshers’
spending habits, with money previously spent on going out now being
channelled to academic texts and food shopping. First years’ spending on
books has increased 25 per cent in the past year, while outlay on food has
increased by over half in the past two years.

Paul Lewis, Vice President of Credit Confidential, said: “The continuing
economic gloom is having an impact on how students spend their cash – with
many freshers choosing to open their wallets at the bookshop instead of the
bar. These findings fly in the face of the commonly held view of student
life. With fees set to increase next year, and a tough job market facing new
graduates, it may be that students are becoming more focussed on their
studies.”

Britain’s weak economy is also limiting term time employment
opportunities for students to help fund university life, with more than half
(52 per cent) not having a job. As a result, many are getting cash and
credit [https://www.creditconfidential.com/credit-report ] from other
places, with a quarter (25 per cent) of first years and more than one in
three (36 per cent) third years borrowing from family and friends to cover
the costs of student life. Debt is now so common among students that almost
one in ten (8 per cent) students now see it as a ‘rite of passage’ and one
in six (15 per cent) say they have no choice but to use credit to get by.

Lewis continued: “It is concerning that so many university students have
no other option than to borrow heavily in order to pay for the day-to-day
things. Borrowing funds from family and friends can place a great strain on
relationships. The alternative of relying on credit is potentially more
damaging, building up expensive debts for the future that can be difficult
to repay and have a negative impact on personal credit ratings
[https://www.creditconfidential.com/credit-rating ].”

Andrew Farmer, +44(0)20 3451 9403 / andrew.farmer@bbpr.com

SOURCE Credit Confidential


Source: PR Newswire