Debt
Here’s the bad news: it is almost certain that you will go into
debt while at uni. In some cases, you’ll be in the red for between
£10,000 and £20,000. That’s a lot of dosh. Yet how much and how
badly you sink into the skint pool, however, is based on how you
responsibly you spend and save your money and how you manage your
loans. So sUK’s got your back. Here is a look at where your
money goes and how to stay in the black.
Quick navigation: Credit cards | Loans | Budgeting | Good practices | Help | Other support
Credit Cards
The idea of going shopping, loading up on stuff and paying for it with a little piece of plastic is highly appealing when you’re a student.
After all, you think, I won’t have to pay it off until…later. But that’s being just a bit naïve. Which is exactly what financial institutions and credit card companies are banking on. They hone in on their prey with attractive offers and utterly confusing rates and terminology. Next thing you know, you’re as deep in debt as a small African country.
Face it, unless you’re good with your money and know how to budget properly, don’t even bother with a credit card. For general information on understanding credit card terms and what is involved in owning one, click on Student Credit Cards.
To help select the best credit card for you, shop around. Find out who has: • Low interest rates • The best rewards or incentives • The easiest terms • A good annual percentage rate • Lowest or free annual fee • Fraud guarantee and customer service Or to compare card companies, click here.
Loans For information about Loans and borrowing money, please click here.
Budgeting A budget can be your best friend. For a helping hand click on the BBC's Budget Calculator
Other Good Practises to Help You Stay Out of Debt
• Set a monthly limit for credit card expenses. If you can afford to spend £50 on your credit card each month, stick to that. Once you have racked up that amount, pretend your card doesn’t exist. Then pay off your monthly amount in full
• Set up an on online bank account and check your statements and balance every week, so that you aren’t caught unaware
• Keep up with monthly payments by paying with direct debits.Then you won’t have to worry about buying stamps, filling out cheques etc.
• Begin to pay off your student loans as soon as you leave school; this will lessen the load later on and save you harsh interest rates
• Check every statement you receive from your lenders carefully. Mistakes do happen, so ensure that you aren’t a victim of a double billing, fraud or other problem. Report any discrepancies to your bank or credit card company
Help! I’m screwed!
If your bank won’t extend your overdraft and your debts have spun completely out of control, try not to panic. There are options. Firstly, don’t wait for your problems to “sort themselves out” or put them off until next month. Deal with your debts the second you notice that it is an issue. Click here for a Five Point Student Debt Action Plan.
Other support:
Hardship Funds: Available through your uni, Hardship Funds are created from money the government gives unis to help students in any way they see fit. But the amount you can receive is small (no more than £500) and has to be paid back as if it were a loan. Most full-time and part-time students are eligible to apply for these funds but there are often many conditions attached.
Access Funds: Like Hardship Funds, Access Funds were created by the government to help out students in financial need. How much and who gets access to access funds varies at each college and Uni. Students must meet the same conditions of a student loan and be in an undergrad or postgrad course. You must be able to prove your financial difficulties. Contact your student services office for more info.
Bursaries and Scholarships: Bursaries are offered by companies to students from disadvantaged backgrounds, while sponsorships are given by companies to students for their high academic achievements. There are often many different types of bursaries and scholarships available within each course, so if you’re planning on working hard and achieving high grades, it may be beneficial to see if you qualify and then apply. Check with your course office to see what prizes are awarded each year.
Quick navigation: Credit cards | Loans | Budgeting | Good practices | Help | Other support
Credit Cards
The idea of going shopping, loading up on stuff and paying for it with a little piece of plastic is highly appealing when you’re a student.
After all, you think, I won’t have to pay it off until…later. But that’s being just a bit naïve. Which is exactly what financial institutions and credit card companies are banking on. They hone in on their prey with attractive offers and utterly confusing rates and terminology. Next thing you know, you’re as deep in debt as a small African country.
Face it, unless you’re good with your money and know how to budget properly, don’t even bother with a credit card. For general information on understanding credit card terms and what is involved in owning one, click on Student Credit Cards.
To help select the best credit card for you, shop around. Find out who has: • Low interest rates • The best rewards or incentives • The easiest terms • A good annual percentage rate • Lowest or free annual fee • Fraud guarantee and customer service Or to compare card companies, click here.
Loans For information about Loans and borrowing money, please click here.
Budgeting A budget can be your best friend. For a helping hand click on the BBC's Budget Calculator
Other Good Practises to Help You Stay Out of Debt
• Set a monthly limit for credit card expenses. If you can afford to spend £50 on your credit card each month, stick to that. Once you have racked up that amount, pretend your card doesn’t exist. Then pay off your monthly amount in full
• Set up an on online bank account and check your statements and balance every week, so that you aren’t caught unaware
• Keep up with monthly payments by paying with direct debits.Then you won’t have to worry about buying stamps, filling out cheques etc.
• Begin to pay off your student loans as soon as you leave school; this will lessen the load later on and save you harsh interest rates
• Check every statement you receive from your lenders carefully. Mistakes do happen, so ensure that you aren’t a victim of a double billing, fraud or other problem. Report any discrepancies to your bank or credit card company
Help! I’m screwed!
If your bank won’t extend your overdraft and your debts have spun completely out of control, try not to panic. There are options. Firstly, don’t wait for your problems to “sort themselves out” or put them off until next month. Deal with your debts the second you notice that it is an issue. Click here for a Five Point Student Debt Action Plan.
Other support:
Hardship Funds: Available through your uni, Hardship Funds are created from money the government gives unis to help students in any way they see fit. But the amount you can receive is small (no more than £500) and has to be paid back as if it were a loan. Most full-time and part-time students are eligible to apply for these funds but there are often many conditions attached.
Access Funds: Like Hardship Funds, Access Funds were created by the government to help out students in financial need. How much and who gets access to access funds varies at each college and Uni. Students must meet the same conditions of a student loan and be in an undergrad or postgrad course. You must be able to prove your financial difficulties. Contact your student services office for more info.
Bursaries and Scholarships: Bursaries are offered by companies to students from disadvantaged backgrounds, while sponsorships are given by companies to students for their high academic achievements. There are often many different types of bursaries and scholarships available within each course, so if you’re planning on working hard and achieving high grades, it may be beneficial to see if you qualify and then apply. Check with your course office to see what prizes are awarded each year.
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