Issue 145

Legal Eagle

25th September 2006

The legal implications of debt, and where to get help

Hello and Welcome to the brand new law column!! First let's get the introductions out of the way- my name is Mairead (pronounced like parade but with an M) otherwise known as mighty mouse. I am a law postgraduate student also familiar to freshers as your lovely halls tutor. So here's the deal, you write into me about all things legal and me being the eternal geek that I am, I will dutifully spend all my waking hours trying to find the solution to your problem or question. Oh and best of all, because I am such a kind hearted soul, I wont even charge a penny for it! Whether it be problems with your unscrupulous employer or evil landlord or maybe you just want to know your rights when it comes to "recreational" smoking give me a buzz and I will do my best for you.

To kick of this first edition just for all our new freshers, I thought I would concentrate on the legal implications of debt. Speaking from experience, it is all to easy to go crazy when you first come to uni by partying every night and buying yourself a spanking new wardrobe with your new shiny credit cards and overdraft but beware! It WILL catch up with you. If you go over your agreed overdraft or max your credit cards or simply forget to make repayments on time this can have serious legal implications. Credit reference agencies hold all this detailed information (for 6 years) and will lower your credit score, which is used for decisions regarding credit applications. You may then be refused credit so when you graduate you may encounter difficulties in obtaining a mortgage or even your dream job as in some sectors, such as financial services, credit checks are part of the recruitment process.

Here are some handy tips to avoid this:

When you go out to the pub or shopping in town don't bring your cards instead bring cash to stop overspending

If things are getting out of control make contact with your creditors and let them know the situation. Ask them to freeze the interest and make a token offer to repay the outstanding amount nominally every month based on what you can afford-they may not agree but you can try.

Finally, be wise with your money (i.e. forget Wind Street and get drunk for pennies in JC's where the cheapest pints are £1.40!) but above all enjoy university as it should be the best time of your life!

For further help and specific advice the Student Financial Aid Office can offer a debt counselling service and you can give them the legal authority to act for you in negotiating with creditors. On campus we have the Student Advice Centre situated on the ground floor of Fulton House with advisers ready to help you with your problems. Another useful organisation is the Citizens Advice Bureau. Their website also has useful fact sheets and advice guides together with details of your nearest local branch www.citizensadvice.org.uk

Mairead Moore