Skip to main content
Back to Debts for Students

Student debt beyond the student loan

Interest-free overdrafts, credit cards taken out at 18, and rent arrears — the common student debt traps.

Debts for Students3 min readReviewed July 2026

Most student bank accounts include large interest-free overdrafts. Used properly, they're a genuine buffer. Used as monthly income, they leave you in the red at graduation, when the interest-free period usually ends.

Credit cards taken out at university often carry small limits but high APRs. If you're falling behind, the same options apply as any other card: request an interest freeze, propose a payment plan, or include the debt in a Debt Management Plan.

Rent arrears are a priority even for students. Contact the university's welfare team early — most universities have hardship funds and can intervene with private landlords.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.