Avoiding and dealing with debt
As a student it is likely that you will need to manage debt as it can easily get out of control. Also you may face legal action if you cannot pay your debts.
Debt sources
Credit cards
- Charge very high interest
- Debt and interest can build up quickly
Tips
- Use credit sparingly
- Repay promptly and keep the limit low
- Shop around for the best rate and repayment period
Store cards
- Charge extremely high interest
Tips
- Avoid these
Mobile phones and internet access
- Contracts and usage can be expensive if not well suited to your usage patterns
Tips
- Keep phone usage as low as possible
- Consider switching to a pre-paid card
- Ensure it is the best plan for you
Course fees
Tips
- If you are struggling to pay university course fees you should seek help through Monash Connect
Personal loans
- Charge high interest rates
Tips
- Before borrowing, consider your ability to repay and the consequences of not meeting the payments
Scams and traps
- Things that sound too good to be true usually are
- Get rich quick schemes usually only benefit the scammer
- Consumers have rights that the government attempts to support
Tips
- Be wary when making all purchases for products and services
- Contact Consumer Affairs Victoria
Identity theft
- Is increasingly common
- Even when discovered, it may not always be possible to undo the losses and damages
Tips
- Keep personal details private - be careful when using social media
- Protect your passwords and PIN numbers
- Shop online using an accredited payment gateway or using a card not linked to your bank account
Gambling
- Regular gambling and the highs and lows of winning and losing can be addictive
Tips
- See a University counsellor for help
Legal help
A poor credit history can prevent you from accessing future financial services. Legal advice is available to help students with any unexpected problems that arise.