Student in financial crisis

kitkatt1982 · 17 October 2017 at 6:54PM

Hi, I'm not sure if this is in the right place so posting in two boards.
My friend rang me just now in tears. She's recently started Uni and thought she had her finances sorted on the grounds that she'd be able to get extra hours in her evening bar work job so used her first loan instalment to clear debt. She's now had an illness resulting in hospitalisation and has both lost income and not been given any extra hours. She's a mature student living alone with no dependents with rent and bills to pay but is about £2500 short until Christmas with no idea what to do. She's approached the Uni and was granted £163 in hardship funds plus a £500 grant but doesn't know what else to do. She has a bad credit score so has no credit options and doesn't know of anyone who would be a guarantor. I'm not in a position to lend her money but wondered if anyone has any ideas? Thanks very much

[Deleted User] · 17 October 2017 at 6:57PM

She won't get credit without an income - and it would just make things worse if she did.

What does she need to pay for between now and Christmas? She needs to prioritise the bills, pay the ones she has to and miss the rest.

What does she have that she can sell?

Can she get further work, in any capacity, to generate more income?

IAmWales · 17 October 2017 at 7:11PM

The uni will expect her to make that money last, tell her to make sure she's only buying absolute essentials. Non priority debts will have to wait.

Is she able to return to work now/ soon? Has she done a statement of all her outgoings?

kitkatt1982 · 17 October 2017 at 7:21PM

Hi she would have to pay 3 months' rent which would be £1800 on its own, plus utilities. Her income that she has would cover her food, transport etc. I don't honestly know how she was planning on getting enough hours to cover that amount over the four months anyway on top of Uni, and don't think she has anything she could sell. I've helped her with budgeting etc previously a few times but it's something she's always struggled with. But she's worked really hard to get into Uni to better herself and her opportunities so it'd be a huge shame to see her have to give it up because of this so thought I'd ask if there's any other help students can access. I've suggested she go and speak with the welfare advisor. I don't think she has anything she could sell

kitkatt1982 · 17 October 2017 at 7:23PM

Yes she's back at work now although she's not really fit to be there but it was a case of having to. She's taking any work she can but only secured about 12 hours a week. She has numerous health problems which limits what she can do as well

IAmWales · 17 October 2017 at 7:46PM

It does sound like her plan was never going to succeed.

Could she get a lodger? How long left does she have on her tenancy?

DebtFreeDuo · 17 October 2017 at 7:52PM

Other than speaking to the uni which she has already done I'm not sure what other options she has other than working. She wouldn't be entitled to any help from the government as shes a student. She really should have waited until January to see what money she had left before overpaying on other things. I know its far from ideal but is there any way she can get back what she overpaid and pay it back more gradually? Other than that the only options would be earning money through work, selling things, completing surveys etc.

DCFC79 · 17 October 2017 at 8:03PM

kitkatt1982 wrote: »

Yes she's back at work now although she's not really fit to be there but it was a case of having to. She's taking any work she can but only secured about 12 hours a week. She has numerous health problems which limits what she can do as well

Your right to not lend her any money.

Has she missed any work with being in hospital ?

kitkatt1982 · 17 October 2017 at 8:04PM

Thankyou, a lodger's not an option as only one bedroom, but I'll ask whether she can get back anything she paid. I'm not sure where it went if it was bill debts, existing credit or money owed to others as I didn't ask at the time but will ask if it's an option to recover some of it. Hopefully the Uni will have some ideas. Her tenancy rolls over but I don't think giving up her house is an option as she'd still need somewhere to live. Uni would have to go before her house &#55357;&#56866;

kitkatt1982 · 17 October 2017 at 8:07PM

DCFC79 wrote: »

Your right to not lend her any money.

Has she missed any work with being in hospital ?

I know, I'd never do this as not in a financial position to. I'd never lend more than I'd be happy / able to give to someone for this very reason. Try to help in other ways if I can. Seems people seem to think I'm loaded though as I get asked a lot! We're raising four children on one income but just sensible with what we've got. Yes she missed two weeks equating to around £300 I think

Pixie5740 · 17 October 2017 at 8:50PM

It sounds as though your friend cannot afford to rent and run a 1-bedroom flat whilst at university. Moving into shared accommodation would seem like an easy win in trying to reduce her outgoings. Being a tenant in a shared house might require a large outlay of cash for letting agency fees and a deposit so perhaps she should consider becoming someone's lodger instead.

Get her to complete a statement of affairs so she can work out exactly how much money she has and which bills she must pay and which ones she can skadoosh for now.

http://www.stoozing.com/calculator/soa.php

Student in financial crisis

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