Getting out of a fixed rate bond to pay of debts???

AllFX

Hi Guys, i am new to this board and I have made a fairly stupid decision (to lock up all my savings for 2 years in a fixed term bond with barclays at 5.70%).
This was completely with the best of intentions! I wanted to keep my money unspent until I finish my degree in 2011. (The bond is released January 2010). So i could go on a working holiday in New Zealand and perhaps have something to invest in a post-graduate degree as well. Unfortunately, now into my second year, my finances have dried up and I find myself struggling to buy food every week and also having to dip into the barclays 'buffer zone' which is not the wisest thing to be doing in my situation. I have an interest free student overdraft with natwest and have just about maxed that out. Fortunately there is hope on the horizon in the shape of a scholarship for £1200 cash on the 19th of December.

Now back to the point..... I was told that I could only get hold of my bond if i died:A or was declared bankrupt. Is this true? Is there anything I can do to stem the tide until my scholarship comes through apart from trying to get my bond (which I gather is unlikely to happen).

I'm really sorry if this sounds menial, but thanks for listening...
Regards
A stressed out undergraduate

Baldur

AllFX wrote: »

I was told that I could only get hold of my bond if i died or was declared bankrupt. Is this true?

Highly likely. You would need to check the Terms & Conditions of the bond to be sure, a copy of which should have been supplied to you when you opened it.

gunnaknow

ALLFX, I take it that you already have a part time job. If not, then try to get some part time work at a bar or restaurant perhaps. Borrow some money from your parents for a short period if you can, with the intention of paying it back when your scholarship comes through.

If banks are demanding money from you, it can be very useful to actually go and speak face to face with the bank managers, to explain how you are expecting money within 1 month. It's harder to get a break from someone down the phone, in a call centre.

Cut back on your food bill as much as you can until your scholarship comes through but don't starve yourself or eat junk. Buy your food from discount supermarkets like Lidl and Aldi. Buy your meat from the butcher and your fruit and veg from the green grocer or market, the're generally cheaper than the supermarkets. Buy lots of tins of the cheapest baked beans if you don't already.

It's only a month, you can get by with just the basics for that long. Ofcourse, don't waste your money on take aways either. Don't spend any money on alcohol or going out on the weekends for the next month. Next time, don't put all of your money in one basket, spread your money around in different fixed terms. A grand in a 6 monther, a grand in a year term etc.