Credit cards labelled a “suitable way of borrowing”
Despite the recent furore over high fees and charges, a leading credit card provider has labelled a new type of card aimed specifically at students as a "suitable way of borrowing money".
As the new academic year starts thousand of students are leaving home for the intellectual and financial challenges of university.
But student loans and contributions from parents rarely fulfil every student’s financial needs, meaning many turn to overdrafts or credit cards to make up the shortfall.
In response, a number of providers have launched credit cards aimed specifically at the student market, which they claim have been designed to help students borrow money sensibly.
The Co-operative Bank is one such provider, having claimed the new type of credit cards is an "effective way for people to manage their finances".
QCK quoted Andy Hammerton, a spokesperson for the Co-operative Bank, saying: "Our view is that there are times when a student using a credit card is a suitable way of borrowing money.
"Credit cards allow people to manage their finances in such a way that if their individual circumstances match can be beneficial."
He also claimed they represent a "flexible" way of managing debts, as they are not reliant on a fixed repayment every month.
Meanwhile, Apacs, the UK payments association, has launched a guide for students providing them with tips on how to protect themselves against fraud and how to manage their money effectively.
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