Overdraft charges & going round in a circle

lovelyx

Hello, hope i'm posting in the right forum, apologies if I'm not.

I'm 19 and in my first year at university. I have a Natwest student account with an interest free overdraft of £500, and a Nationwide Flex Account also with an overdraft of £500, but obviously not interest free.

I get student loans and grants every 5 months, that don't cover my astronomical student halls rent - which is £103 a week and also paid every 5 months. Because of this, any time I get money into my account it immediately goes back out and places me back into my overdraft(s), which I then have to use to live on. In my first term I managed to spend £400 of my Natwest overdraft and tried to keep my Nationwide one for 'emergencies' because I get charged interest on that. My grandfather died suddenly in October last year and I used my NWide overdraft to buy train tickets to get from uni back home at incredibly short notice, and I then used it to live on when I was at home, which used up a lot of my overdraft.

I went over my agreed overdraft limit with Nationwide, but a few days later I deposited £50 into the account and went back into it, but they've charged me £70 in fees and I've just gone back over the agreed limit because of that. I don't have enough money to get me back into the overdraft, and I know this will mean that I'll just keep getting charged and charged and charged for being over my limit and it'll just be one big circle!
They won't extend my overdraft so I really don't know what to do.

I know you're probably thinking I should get a job, but I have such a heavy workload that I don't think I could do it unless I sacrificed how well I'm doing with my degree, and I don't want to do that because I worked so hard to get here. My parents can't help me out either because they're not exactly well off and have their own bills to pay, etc.

I'm really scared because I really have no idea what to do. I just want some ideas, but please be nice!

GeorgeUK

Would you be able to make use of the hardship fund at the Uni? You would need to pay this back, but it might buy you enough time to get things straightened out.

Might also be worth putting up a statement of affairs so you can see if there are any savings to be made from your budget. https://www.makesenseofcards.com/soacalc.html

Would it be possible to get a weekend job working part time in a bar or stockroom?

dollybeads

Hi there, I didn't want to just read and run.

I am sure someone will be along shortly with experience on the student/loan situation. But in the meantime have you tried speaking to the bank directly explaining you situation to see if they can offer you an extension to your overdraft for this month to stop the charges? Or even pleading poor student so that they agree to waive them?

Not sure if all banks do this, but there is often a student advisor or someone who is specialised in student finance so might be worth asking to speak to them (if you branch has one).

Failing that could you ask your parents for a very short temporary loan to cover this just so you do not accrue any further charges?

Does your Uni or Student Union have anyone who supports students in managing their finances? They might also be worth a try.

Failing any of the above, you could speak to your local Citizens advice bureau for advice.

I would seriously consider a very part time job for the future, I know its hard, to study and work at the same time, but this will crop up again and again.

you could also post your statement of affairs on here (SOA) from the following link, this would enable others to offer you advice on where you might be able to make cutbacks on your spending.

http://www.makesenseofcards.com/soacalc.html

Hope you manage to get something sorted, best wishes Dolly x

lovelyx

GeorgeUK wrote: »

Would you be able to make use of the hardship fund at the Uni? You would need to pay this back, but it might buy you enough time to get things straightened out.

Might also be worth putting up a statement of affairs so you can see if there are any savings to be made from your budget. www.makesenseofcards.com/soacalc.html

Would it be possible to get a weekend job working part time in a bar or stockroom?

Thanks for the reply.

I will look into a hardship fund, I've heard of them but didn't think of looking into it, thank you.

I suppose I will have to get a job. I want to give my all to my degree and make sure I get the best out of it but I know that's not realistic. I have applied for a few things but it seems to be quite difficult finding jobs that are just for the weekend in a city that has two unis and 23,000 students in my university alone.

I shall also do the Statement of Affairs thing, but its difficult because it wont let me progress because I'm not putting electricity bills, clothing spend, etc in. My rent includes electricity and all bills, and I don't buy clothes because I can't! The only other thing I pay for along with my rent and grocery bills is my phone bill, which is £30 a month, which is quite expensive but I use it a lot instead of having the internet...

pinkarsenalprincess

I know you are reluctant to get a job but it is possible to study, work and still do well. I studied Primary teaching at uni, working as many hours as I could to earn money (I had to) even during placement and still qualified with a first.

lovelyx

pinkarsenalprincess wrote: »

I know you are reluctant to get a job but it is possible to study, work and still do well. I studied Primary teaching at uni, working as many hours as I could to earn money (I had to) even during placement and still qualified with a first.

I am going to try and get a job, I know that I can't really survive without one right now! I'm studying journalism and as part of my course I have to go all over the city attending council meetings, assemblies, chasing up stories and things like that so I don't know how having a job will affect that. But I can't complain about the situation i'm in when I don't have a job, haha. I'll start applying.

And congrats for still coming out with a first!

lovelyx

dollybeads wrote: »

Hi there, I didn't want to just read and run.

I am sure someone will be along shortly with experience on the student/loan situation. But in the meantime have you tried speaking to the bank directly explaining you situation to see if they can offer you an extension to your overdraft for this month to stop the charges? Or even pleading poor student so that they agree to waive them?

Not sure if all banks do this, but there is often a student advisor or someone who is specialised in student finance so might be worth asking to speak to them (if you branch has one).

Failing that could you ask your parents for a very short temporary loan to cover this just so you do not accrue any further charges?

Does your Uni or Student Union have anyone who supports students in managing their finances? They might also be worth a try.

Failing any of the above, you could speak to your local Citizens advice bureau for advice.

I would seriously consider a very part time job for the future, I know its hard, to study and work at the same time, but this will crop up again and again.

you could also post your statement of affairs on here (SOA) from the following link, this would enable others to offer you advice on where you might be able to make cutbacks on your spending.

http://www.makesenseofcards.com/soacalc.html

Hope you manage to get something sorted, best wishes Dolly x

Thanks for the reply!

I did phone up Nationwide telling them that I am a student and therefore for the time being I need my overdraft, but they were very unsympathetic and told me that they don't do student accounts (which wasn't what I was asking for anyway!) and that the only way I'd be able to stop the charges would be to deposit money in the account. I'll go into my branch soon and see if I can get anywhere with them in person but it's not looking good...

I am going to ask my mum about this, I feel bad about it because she isn't in great financial shape herself because though she works 40+ hours a week, her employer never pays her correctly meaning she really does scrape by. But I know I can't leave the charges to mount up or i'll be in even more trouble.

I am going to start looking for a job, and I shall also go to my uni and ask about things, hopefully without crying and looking like a fool

ShAnE

Do you have anything left over in the student bank account which could get you under your nationwide OD limit?
I use online banking, and went over my limit one month. I sent them a message through my online banking account. Saying as it was my first time, could they remove the charges, as I have been with them for 10+ years (child saving account etc), and was in the middle of moving house/applying for a £100 extension to my overdraft and they agreed, could you try that?

Also I know it's a long time away, but during the summers I worked alot, just to have some buffer funds for when the next term started, did you work before uni, would they let you go back on a 3 month of 10 week contract?
You're also able to claim alot of the tax back, because you won't be working for the rest of the year.

A saturday or sunday job isn't out of the question, I treated my final year in uni as a 8-6 M-F job, so had the opportunity to work weekends or at least one of the days.

Just a thought, but once you get under the limit how do you plan to live, until the next loan in April? Do you have any old books from last term you could sell? Is internet not included in your accommodation? - If so start using Skype to call home/ BF or GF etc and see if you can reduce your mobile line rental

GeorgieFTB

Didn't want to read and run, walk into the bank and plead poverty, if that doesn't work go to your other bank and plead poverty, I found the bank with my student account much easier to deal with, if I had issues then they were ok about extending my overdraft for a few months. Then just shuffle your debts around til your charges are sorted.

On the subject of jobs have you thought about something like Avon. I had a part time job and did a bit of Avon round my hall of residence, bit more flexible. There is also an up your income board on this site you might find useful.

lovelyx

ShAnE wrote: »

Do you have anything left over in the student bank account which could get you under your nationwide OD limit?
I use online banking, and went over my limit one month. I sent them a message through my online banking account. Saying as it was my first time, could they remove the charges, as I have been with them for 10+ years (child saving account etc), and was in the middle of moving house/applying for a £100 extension to my overdraft and they agreed, could you try that?

Also I know it's a long time away, but during the summers I worked alot, just to have some buffer funds for when the next term started, did you work before uni, would they let you go back on a 3 month of 10 week contract?
You're also able to claim alot of the tax back, because you won't be working for the rest of the year.

A saturday or sunday job isn't out of the question, I treated my final year in uni as a 8-6 M-F job, so had the opportunity to work weekends or at least one of the days.

Just a thought, but once you get under the limit how do you plan to live, until the next loan in April? Do you have any old books from last term you could sell? Is internet not included in your accommodation? - If so start using Skype to call home/ BF or GF etc and see if you can reduce your mobile line rental

I could use some of my overdraft from my student account to pay off this overdraft but that will leave me with only about £100 to last me until May, when my next installment is being paid.

I took a gap year before going to uni and worked in a shop all year, but I'm not planning on going home for the summer and the company doesn't have a store anywhere near where I go to uni so I'd have to get a new job. If I can get a job then I will have to learn how to balance my uni workload with working, which will be tough but will be worth it. I was planning on getting a job during the summer when I don't have so much to do anyway

I'm planning on selling things but I don't have any books that I can sell because I still need them for what I'm doing this year. Once I get under the limit I'm not entirely sure how I'll live, I suppose i'll just have to sell things and budget to within an inch of my life

Internet isn't included in my accommodation, no. I am going to try and reduce what I pay for my phone but I'm not sure how successful that will be considering I haven't had the contract long. Off I go to read the mobile phone forum for some tips on that...

Thanks for the tip about messaging the bank, I'll try that too.

lovelyx

GeorgieFTB wrote: »

Didn't want to read and run, walk into the bank and plead poverty, if that doesn't work go to your other bank and plead poverty, I found the bank with my student account much easier to deal with, if I had issues then they were ok about extending my overdraft for a few months. Then just shuffle your debts around til your charges are sorted.

On the subject of jobs have you thought about something like Avon. I had a part time job and did a bit of Avon round my hall of residence, bit more flexible. There is also an up your income board on this site you might find useful.

Thanks for the reply

I didn't think about going into my student account bank and asking them for an extension, I'll do that, I have heard that they're pretty good at extending overdrafts.

I'll look into Avon and other things like that, and the board too. Thank you