Debts and Going to University

Laurenxx

Right so heres ther drill:
I am 20 and Starting uni in october. I have debts on credit cards/overdrafts but i need to clear some for uni, and not sure where to start. I will be getting a student loan but that will all go on my accomodation and don't really want any money earned which will be needed for food etc for my debt, although i know it inevitable.

I have:
£1000 on my credit card
£300 Overdraft
£250 Overdraft
£500 Overdraft (student A/C- so not as important to clear as the others)

Where do i start , whhich one is better to tackle before i go, and which is better to tackle while i am there (although i can't see myself paying off the credit card, due to trying to save as well) bearing in mind i prob earn around £300 a week, and i have many other bills as well.

Any advice would be appricated as i am in a real dilemma, and no my parents do not know as they wouldnt help me at all.

Many thanks

RAS

You need to find out what the APrs are on those debts and pay off the most expensive first.

Do you have any stuff you can sell on e-bay, amazon or take to a "carboot" sale?

Laurenxx

yes i am planning on doing the boot sale, 'e-bay-ing' etc. I need as much money as possible as i am trying to save as well, to give a chance to find a job at uni.

APR's... if i am honest i think the overdrafts have the highest, if my memory serves me correctly.
As a generalisation, would the overdrafts be the best to pay off first?

I was thinking of ...
paying off the £300 and £250( or trying possibly just £100 of the £250 and the rest at xmas or something) then setting up a Standing order for the credit card so minium payment is taken each month which also means i can cut up the card. The £500 student has £10 per month paid into it a month, so regular money goes in as the T&C stipulate. When the £300 is paid, close the account and the £250 will turn into a student account.

Does this sound like a good idea ?

Thank-you

Lauren

BeautyandtheBeast_3

you will easily get a bar job at university - and they are loads of fun, if it was me i would try to get rid of the CC first. What bills are you expecting at University? All i had was Accommodation and Food/Beer in my first year as i was on campus.

[Deleted User]

Laurenxx wrote: »

APR's... if i am honest i think the overdrafts have the highest, if my memory serves me correctly.
As a generalisation, would the overdrafts be the best to pay off first?

It's best to pay off whichever debt has the highest APR.

Have a look at this site:

http://www.whatsthecost.com/snowball.aspx

This calculator allows you to enter up to 20 different debts with their associated APRs, and the total amount you want to spend per month servicing your debts, and it'll work out the order in which you should pay them together with the monthly payments.

Laurenxx wrote: »

then setting up a Standing order for the credit card so minium payment is taken each month which also means i can cut up the card.

I'd suggest paying more than the minimum payment otherwise the interest will keep increasing.

When I was at uni I racked up a bit of debt but found a job, worked part time, full time over summer holidays, and earnt quite a lot by the end of the 3 years even though it was minimum wage.

Don't let the debt get you down or stop you having fun; uni will be the best 3 years of your life!

BeautyandtheBeast_3

Deleted_User wrote: »

It's best to pay off whichever debt has the highest APR.

Have a look at this site:

http://www.whatsthecost.com/snowball.aspx

I'd suggest paying more than the minimum payment otherwise the interest will keep increasing.

When I was at uni I racked up a bit of debt but found a job, worked part time, full time over summer holidays, and earnt quite a lot by the end of the 3 years even though it was minimum wage.

Don't let the debt get you down or stop you having fun; uni will be the best 3 years of your life!

This is so true!!!!

Laurenxx

ahhh, thats fantastic thank you so much.

Its has basically toldi me to do what i had posted to do above.
I know i shouldn't just pay the minimum payment but if i get extra money at any point i can just go in and pay it as well, so its not too bad, and with being at uni its an extra expence which isnt 100% needed, when on a tight budget anyways.

I have so much stuff to sell at the bootfair which should be cool as i will save half, put half on my debt and likewise with any spare cash.

hopefully i can close the Abbey £300 account before i go to uni.

thanks guys

gfplux

Hello Laurenxx,

1) You must not allow your student loan be with the Banks you have non student overdrafts with as the may decide to cancel your overdraft and pay it off with the student loan.

2) You mention saving when you have all these debts. Pay down debt BEFORE saving.

3) You have avoiding digging out the paperwork to check the APR's. If you want to cure your debt you have to get to grips with these. Also remember these can change.

You are also in a difficult position because usually people go to Uni debt free and come out owing money. You are starting with debt. Be very, very careful.
Why not do an SOA using http://www.makesenseofcards.com/soacalc.html This will help you to keep your budget under control.

Good Luck

Lottebear

I would pay the most expenisve off first, if you can to get rid of them before you go, by working, ebaying.

If you have old A Level/ GCSE text books or revision guides these are easy to sell on Amazon to raise a few quid.

chipz

i would save as much £ before going into uni. you'll need more £ than you plan for i can guarantee. social, study, living. expensive times right now darling

Fire_Fox

The best way to get a job at university is to start sending out CVs and covering letters now. Identify via the internet any pubs/ bars/ restaurants/ supermarkets/ clothing shops etc. that you might be interested in working for or have suitable experience for. Then start applying and state that you will be available for interview from whatever date you first arrive at university. I did this and had two jobs lined up before I moved.