APACS, the UK Payment Association, has just launched a borrowing advice guide for students, called "Cards and Students". This answers a much needed gap in the market - every year, more students and recent graduates complain about the crushing load of student debt that sits atop their shoulders, yet there is still no distinct body or advice group established for the sole purpose of addressing this problem. The new APACS guide goes some way to addressing this gap, though clearly much more is still needed.

The new guide offers students short and handy advice on responsible borrowing, and though it targets credit card usage in particular, its wise and responsible suggestions can just as easily be applied to any type of student borrowing, including both student loans and bank loans. Looking at the long-term implications of borrowing rather than the short term is a key aspect to keeping debts to a minimum, especially as banks appear to be cutting back on credit card incentive offers this year according to Richard Brown, chief executive of credit card comparison website Moneynet.co.uk. One handy graphic used highlights both the benefits and risks of borrowing, and the guide also stresses the importance of choosing a particular financial product to suit your specific needs. For instance, while a credit card may seem like a convenient, short-term way to borrow money, the interest free grace period that often makes credit cards so enticing is always limited to a particular number of months; therefore, if you're thinking of borrowing money for more than a few months, it may be a better idea to take out a personal loan, such as Barclay's Professional Studies Loan which doesn't ask borrowers to start making repayments for up to nine months after you completing education.

The guide offers a handy Jargon Buster, explaining important terms like "APR" and "Monthly Interest Rates". It also offers advice on how to avoid credit card fraud, as well as how to handle the situation if you have been a target. More generally and importantly, it offers students a list of agencies which provide help dealing with debt. These include Choosing and Using, the Citizens Advice Bureau, National Debtline, Consumer Credit Counselling Service and Community Legal Service Direct. All these organisations, among a host of others aim to provide helpful and accurate advice encouraging responsible borrowing.

Sarah Quinn, APACS Director of Communications says, “Nowadays, most students expect to be in debt when they graduate and whilst it might be impossible to avoid student loan debt, getting a handle on managing your finances can make the world of difference. We have an important role to play in educating all people, not just students, about responsible borrowing and the benefits and risks of using plastic cards."

By educating students on the dangers of using credit cards irresponsibly, and alerting them to other available methods of borrowing, like loans, APACS are providing a very valuable service, one that should be emulated by other organisations in time to come.