Debt advice for students
Money can be a sensitive subject for students. It could be the first time in your life you`ve been fully responsible for your own finances. This can be daunting, and it could take you a while to get used to.
You`ll probably be relying mostly on your student loan to get by during your student years. Some people may also get some financial assistance from their family, and some might have a part-time job and/or work over the holidays.
All of these things can help, but if you`re not keeping a close eye on your money, you could find yourself in trouble more easily than you may think.
Of all the financial worries students face, debt will probably be at the top of your list. Although you won`t need to worry about repaying your student loan until you graduate and start earning a certain amount (£15,000), things like overdraft debt could affect you sooner.
How can I avoid problems with debt?
There are a few steps you can take to reduce your chances of trouble with debt during your time as a student.
Plan your finances well
Perhaps the most important lesson you`ll need to learn - regardless of whether you borrow money - is to plan out your finances carefully. Set yourself a strict weekly or monthly spending budget that you know you can afford, and if you do borrow money, make sure any repayments are included in your budget.
The more tightly you control your finances, the less likely you are to get into trouble, and the more easily you`ll be able to see if any problems are on the horizon.
If in doubt, don`t borrow money!
It may sound simple, but if there is any doubt that you can afford to repay what you borrow, you simply shouldn`t borrow money on things like credit cards.
If you borrow money, you`ll be expected to repay it regardless of your personal circumstances. As such, make sure you fully plan out your repayments before you start, and make sure that you will still be able to afford this alongside essential costs like food and rent.
Look out for interest-free overdrafts
Many banks offer student accounts with an interest-free overdraft included. This can be one of the most sensible ways of borrowing for a student - but you should still remember to stay within your means.You will still need to repay whatever you borrow, and the more debt you build up, the more difficult this is likely to be. And if you leave it until you graduate, your account provider may start charging interest.
What should I do if I`m having problems with debt?
If you do find yourself having trouble with your debt repayments, it`s important that you inform your lender(s) as soon as you can. They may agree to accept lower payments for a while, for example.
You could also contact a debt adviser. They can talk you through your options when it comes to tackling your debts and answer any questions you have.
For help with your debts, click here or call us today on 0800 074 8639.
Back to debt consolidation blog home
Carlton House, Vere Street, Salford M50 2GQ. Company registration No. 4348410. Registered in England and Wales