Martin Lewis: Money Saving Expert reveals this important information about your debt

Martin Lewis, 46, has helped thousands of people save money with his advice and tips on finance.

He is now targeting teenagers to educate them on how to handle their money in the future.

His ITV programme 10 Things Your Kids Need to Know aims offers his best advice for young people.

One of his tips is the difference between good debt and bad debt.

He explained: “If you want to buy a house you’re going to have to get a mortgage, that’s a debt.

“if you want to go to university you need to get a student loan, that is a debt.

“If young people break the debt then is no delineation between other forms of debt, which leads to 0 per cent overdraft to payday loans.”

These are bad debts and can quickly spiral out of control when paying back what is owed.

“We should be telling our children when it is right or wrong to borrow,” he explained.

“A good debt is one that is cheap as possible, affordable to repay and its something for the future.”

He also told some of the students how to choose their future, and how having a number of skills can help their careers.

Many however have been put off from university due to the debts that would occur.

One student said: “I’m not going because of the finances and I hate the thought of being in debt and owing a lot of money.” Another said he had no parents to support him when it came to money at university.

Martin Lewis said it “broke his heart” saying that and that they should go to university if they need to.

“The amount you borrow is irrelevant to what you pay. You will repay nine per cent of everything you earn above £25,000,” he said. For example, post-graduates earning £30,000 a year would pay back just £450 a year.

He urged not to let “financial fears” put people off from university.

Martin has previously explained why student loan debt is “irrelevant” when it comes to going to university. 

He wrote on Facebook: “Scenario 1: Student debt £20,000. Your earnings £31,000. As you repay nine per cent of everything above £21,000 your annual repayment is £900.

“Scenario 2: Student debt £50,000. Your earnings £31,000. As you repay nine per cent of everything above £21,000 your annual repayment is £900.

“Repayments stop after 30 years regardless. So the only difference the amount you borrow makes is whether you will clear the debt within those 30 years.”

The main concern should be for parents who need to help their children out when supporting them during their university degree.