It may not be quite as desperate as Withnail and I or The Young Ones, but students have always been blighted by a reputation of living on the edge. Moving out of home and studying at university is perhaps the only time of life when you survive on the cheapest beans and bread but miraculously can always afford to go to the pub or Student Union bar.

While this might sound amusing and even romantic, paying too little regard to your finances for three, four or more years can have a long-term damaging effect on your hard-earned paypacket during your entire 20s and beyond. The 2007 NatWest Student Money Matters survey estimates that the average student graduating during that year left university with a £12,363 debt to repay.

But many young people face much higher debts if parents are unable to help with top up fees, accommodation and living expenses. With an average starting salary of £17,817 for 22-29 year olds, this balance can take years to repay - which of course, is not so fun as racking it up. And if you have a disregard for any form of student borrowing, whether it be credit cards, overdrafts or loans, it can have a long-term impact on your credit rating when you graduate.

This can put paid to the chances of getting a mortgage or even a loan for a car to get you to work, which is very frustrating. So, somewhere amid the freedom and joviality of university, it's still a good idea to understand the different forms of borrowing as well as their risk and cost - and draw up a plan of how you can use as little of them as possible. First, read the CashQuestions guide to student finance.

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