New research shows that the average student has £7,500 worth of debts, while nearly a third owe more than £10,000.

The study by Halifax reveals that eight out of 10 students have a student loan, and they owe an average of £4,550 on it, while 73% have an overdraft facility in place, which around 50% of undergraduates use.

A third of those who use their overdraft are overdrawn by more than £1,250, with the average undergraduate owing £952, while 43% of students also confessed to having a credit card on which they have borrowed an average of £778.

More than one in four students said they are relying on debt to help fund their degree, although 52% are also working while they are at university.

Half of those questioned said they get financial assistance from their parents, while 44% receive money from the Government and 29% said they use their savings to help fund their time at university.

Of all those questioned, 82% of undergraduates said they expect they will be in debt when they finish their studies.

Sue Harper, head of student banking at Halifax, said: "These results show just how much debt students are building up while studying. These are significant sums for anyone, let alone someone who is not yet working full-time."

The study found students spend an average of £164.90 a week, with accommodation their greatest single expenditure at an average of £60.70, followed by food at £27.

But undergraduates also admit to spending £41.20 on cigarettes, alcohol, pubs, cinemas and takeaways each week, which is four times the amount they spend on course materials, books and stationery.

Male students spend more on socialising than female ones at an average of £46.80 a week, compared with £36.80.

Looking to the future, undergraduates expect to earn an average of £18,790 a year in their first job, although 15% think their first salary will be less than £15,000 a year.

And recent research from NatWest seems to indicate the lower figure is nearer the mark, as it suggests graduate earnings during the first year are actually more likely to be around £14,515.

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