With thousands of graduates stuck in debt struggling to pay off student loans, overdrafts and credit cards, at a time where the number of available jobs is decreasing significantly, this year's university students are being urged to take adequate steps to avoid landing themselves into the same problem upon completing their degree.

Loans

When going to university, money is something that will be needed. Whether it's to pay for tuition fees, food, bills, accommodation or other living costs, most students will need to borrow to cover the costs of going to university.

Always opt for a student loan rather than any other loans as the interest rates are usually lower, and you can never be blacklisted from a student loan. You will also only be asked to pay it off as soon as you begin to earn over a certain amount.

Despite this year's fall in interest rates on student loans, graduates of 2008/09 are struggling to even begin with their repayments due to the impact of the recession. As a result, students should only borrow what they need as they are more likely to spend money on things that they don't need if they have it.

Also see if you are able to apply for a grant. However, say no to other types of funding, such as credit cards and overdraft facilities. With a number of social network sites advertising credit cards to students, the number of students in credit card debt could soar.

Experts have stated that credit cards are one of the things students shouldn't be packing when preparing for university. By opting for overdraft facilities, and having a credit card, students are more likely to fall into debt.

Even if you have a weekend job, the chances of your salary covering both your overdraft and credit card are less likely.

If you really need the cash, cut down on other unnecessary items by taking advantage of your university facilities.

Take advantage of university services

There are a number of ways you can cut back on spending just by using your university facilities.

Use your university library instead of buying a laptop or a PC. This would mean that your electricity bills would be reduced and you would not have to pay extra to be connected to the internet.

Ditch your cars and take the university bus or opt for a bike. University bus services are usually free of charge providing you have ID. Most universities are also bike-friendly so you can cycle to and from campuses.

Also, if you intend on living out, seek student accommodation. These are usually cheaper than opting to rent a place a place to stay otherwise.

You can also take advantages on student discounts. If you apply for an NUS card, you can get up to 20 per cent off in book stores and high street shops.

Insure your valuables

With recent crime figures revealing the increase in the number of homes being burgled during the recession, students are being advised to take out home insurance to ensure their possessions are covered.

Students are more likely to fall victim to burglaries as their accommodation usually contains more valuables per head than a normal household.

Bike theft is also growing with students and it is important to ensure you take out insurance and take adequate steps to ensure your possessions are safe and secure.

However, some students should do extra research before purchasing home insurance as they could end up paying more for no reason as some home insurance policies cover the contents if a student while they are living at university.

Robin Bailey, insurance director at Nationwide, states: "Parents may be unaware that their child's contents could be covered under their own home insurance policy and therefore may not need to take out additional cover while they are living at university."