Young people heading to university this autumn are being urged to understand the risks associated with easily accessible forms of credit. Advice NI warns that the repayments across credit options such as payday loans, overdrafts, credit cards, and buy-now-pay-later schemes, can quickly become unaffordable, leaving students vulnerable to problematic debt.
Data from the charity’s personal debt service shows that students across Northern Ireland are becoming increasingly reliant on credit cards, with those supported by Advice NI in 2025 owing around £1,600 on average. Worryingly, the data also shows that some students have turned to payday loans, with individual amounts owed exceeding £2,000. Students seeking support from the service also commonly rely on overdrafts, store cards and catalogue credit.
These debts are in addition to student loans, adding further pressure to already stretched student finances. Since 2019, Advice NI has supported over 120 students to deal with over £850,000 in student loan debt. Sinead Campbell, Head of Money, Debt and Quality at Advice NI, said, “University is often the first experience young people have of managing their finances independently. With that in mind, students can overlook the long-term consequences that come with the financial decisions made at this stage of life.
“Anyone considering taking on credit should make sure they fully understand the risks and costs involved, particularly where it is your first time borrowing, and it is easy to access. Overdrafts, credit cards and buy now, pay later loans can seem like a simple way to manage short-term financial pressure. However, as our data shows, repayments can quickly spiral out of control, leaving many young people, especially those with limited financial knowledge, more vulnerable to problem debt.
“Payday loans are a particularly expensive form of borrowing. They usually need to be repaid within a short timeframe, often within three months, and can carry high interest charges. This means the debt can quickly become unmanageable if it is not repaid promptly. Our advice is to first consider whether you really need to borrow the money and to explore whether there are more affordable alternatives are available.”
Advice NI is also encouraging students to take a proactive approach to managing their finances. This includes drawing up a realistic budget covering essential monthly costs such as rent, food, travel, study costs, keeping track of spending to identify unnecessary outgoings and, most importantly, reaching out for support.
Fiona Magee, Interim Chief Executive, said reaching out for support early on is essential.
She explained, “For young people, it is particularly important that borrowing does not become the source of financial difficulty into later life and building good financial habits now can help set people up for a much more secure financial future beyond graduation. Our debt service is available to anyone struggling regardless of age. However, we urge people to reach out for support as early as possible – this gives our expert advisers the best chance of improving the outcome.”
Advice NI
Advice NI, which is funded by the Department for Communities, offers free, confidential and impartial debt advice to people struggling to make ends meet. In 2025/2026, it supported over 3,500 people collectively trying to navigate almost £42.8 million of debt, highlighting the sheer depth of Northern Ireland’s debt burden.
