Students with cash problems need help staying out of high-interest debt, bank staff and tertiary students say.
The New Zealand Union of Students' Association (NZUSA) and bank workers union Finsec have joined forces to fight the ever-growing student debt, calling on banks to rethink their services to students.
The call comes in response to recent data showing a growing student reliance on credit cards and other bank debt.
According to the NZUSA income and expenditure survey, the amount students owe on credit cards has risen 32 per cent since 2004. NZUSA co-president Paul Falloon said banks should show how they value their student customers by easing penalties for default payments, offering interest-free overdrafts and loans as a last resort.
"Balancing the books while studying is hard enough with high fees and so few being able to access a living allowance," Mr Falloon said. "We want banks to follow the Government's lead and ensure that students aren't further punished by crippling market interest on their bank debts, especially after graduation."
Finsec reiterated the message, saying the student market significant to banks, and an ethical approach to student accounts should be adopted. Finsec campaigns manager Andrew Campbell said the recent Finsec better banks campaign aimed to improve services to customers, and said students were a part of that. "Better banks for students will support them through their studies with no-interest packages and not load them up with credit card debt."
Mr Campbell said banks had an important role in making sure that student credit card debt did not continue rising at such an alarming rate, and said banks should investigate the reasons for the recent increase.
