Students warned about credit card debt

Survey published on bank accounts and credit card costs, to help youth manage their money better.

The Financial Regulator has published its first student cost surveys on bank accounts and credit cards. Along with a Money Tips for Students booklet, the information outlines the different options in banking and borrowing money as well as highlighting the cost of long-term student credit card debt.

A case study in the survey said that paying for a €500 holiday by credit card can cost €420 extra and take more than 11 years to re-pay if the debt is not quickly cleared.

The surveys compare what's on offer from bank accounts in AIB, Bank of Ireland, National Irish Bank, Permanent TSB and Ulster Bank. Credit card options are compared from AIB, Bank of Ireland and Ulster Bank. Facilities, interest rates for overdrafts and other services available are all compared. Students are advised to shop around to find the best banking deals.

The Financial Regulator's consumer director, Mary O'Dea, said that credit cards were not good for long-term loans and could leave students very in debt.

On student banking she said:

“Because student banking is free, many undergraduates focus on the special offers that they get with accounts and sometimes even open accounts with a few different banks to get these offers.

“Always look beyond the special offers to see which product is best and use our surveys to help you.

“Remember that if you have more than one account, you will pay stamp duty for every ATM and Laser card you hold if you use them.”

The Money Tips for Students booklet is available by calling lo-call 1890-777777, online at www.itsyourmoney.ie or from the Consumer Information Centre at College Green, Dublin. 

Find out more about money worries and being a student.