Want it, want it, want it, got it, got it, got it… Now pay for it! Even before I got to university if you can call Luton University a university I was handed an overdraft of £750, I spent that before I’d even enrolled and convinced HSBC to increase it to £1,750 (a privilege saved for fourth year students).

I was disappointed with my £200 limit with Capital One but Egg was more than happy to hand over 3Gs and the spending really started. In the four years I was at university I never missed a payment and never went over my limits on my collection of cards, which is vital if you’re ever going to see an American Express.

I had a real problem with money and credit, always wanting the latest clothes, weekends in NYC and not hesitating to buy the rounds at the bar. Then came the personal loan to consolidate all the debt, but AmEx were more interested in giving a gold card with no limit. Ouch! Finally I couldn’t afford to pay them off on time, I slipped into arrears, and tuna out of a can with a splash of salad got dull.

I was insolvent at 23 and my creditors were aware of it – my silver Virgin Atlantic flying card downgraded to red (no first class check in for me). The pain of having to arrange repayment plans, sticking to a budget, and live on the money I earned hit me hard. The irony was that I was working for a financial institution I actually owed money to, yet my job was to push people further into debt with their products and services.

I had extensive knowledge of the market, knew all the APRs and the rules about offering credit yet hardly any of these codes of practice had been highlighted to me. As a student you’re likely to leave university with at least £12,000 of debt, which you’ll end up paying right out of your salary, lovingly deducted along with tax and national insurance. That shiny bit of plastic isn’t your friend now! So if you can, cut it up, erase the “long number along the middle” and the “valid until date”, and “the last three numbers on the reverse of the card” from your mind. Pretend you don’t even have the account, but make sure you’re making repayments.

Draw up a budget; include everything starting with the essentials, your rent or mortgage, bills, food, travel… You don’t have to buy every round at the bar, and the latest throw-away fashion at Selfridges can be found in H&M for half the price! Be realistic with your budget, and stick to it. Pay your bills the day you get paid, so you know exactly what you’re left with to play with.

In your winter of discontent use the “snowball” payment method to clear your debts faster. Start with the credit card with the highest APR and pay as much off that card as possible each month and only the minimum off the other cards. You’ll be paying less in interest charges saving you money immediately. You’ll pay off the first card much quicker, and have more money (a bigger snowball) to throw at your other cards. Eventually you’ll have enough extra cash to really melt the amount owed on the other cards until you’ve paid them all off, and live… Debt and tuna free – after all there’s a fish shortage.

If you need advice about student debt visit citizensadvice.org.uk, nusonline.co.uk or nationadebtline.co.uk. You can call the National Debt Line on 0808 808 4000.

Simon Johnson - Originally Printed in the issue 899.