Huge Overdraft

Derivative

Sadly, if you have one, being in it is something you'll have to put up with.

I'm a second year student and I don't live in my overdraft - I just eat rice and beans because I want to minimise my debt.

I don't think anyone who's in debt should be thinking about buying a TV licence. It's £130 a year that's a complete waste. You can get the same entertainment for free on the Internet - and that's a lot more essential for students.

And no, before people post their moans, there is nothing illegal about it. Watch time delayed stuff on iPlayer and videos on Youtube. Done.

MusicalLawyer

I agree re TV Licence. You only need one if you're watching Eastenders on TV when it's on, or if you're watching it on iPlayer whilst it's showed on TV... if you watch it after the episode on TV has finished, you don't need a TV licence...

You wouldn't need a TV either, so you could sell it and put it towards your overdraft

Jezminda

I'm a second year and my partner is a third year and we've never had an overdraft and can afford to have a few nice bits, tv etc. what are you spending your money on?!

Derivative

Jezminda wrote: »

I'm a second year and my partner is a third year and we've never had an overdraft and can afford to have a few nice bits, tv etc. what are you spending your money on?!

Depends on parental income and student loan support.
If you have low household income, you'll be fine.
If you have medium/high household income, your parents should be contributing otherwise you can run into problems.

macman

Assuming you were living at home before university (which may not be the case), how did you manage to run up a £1,500 overdraft before you arrived?
Can you switch to a cheaper form of borrowing until you clear it-personal loan maybe?
How about selling some stuff on eBay? Old mobiles, audio equipment, electronics etc?
Independent living is expensive, as you're finding out. Good luck.

tbs624

Why had you run up such a large OD even before arriving at Uni?

As your status says you are in Cardiff then presumably you are either at Cardiff Uni or Glamorgan Uni

http://www.cardiffstudents.com/articles/find-casual-work-with-jobshop

http://www.glamsu.com/jobshop/

Can you look for work that can be done full time in your academic breaks?

Have a look at the Up your income board on here.

When you go for an interview for a job, follow your interview up with a call thanking them for seeing you and saying how keen you would be to get the job. If you don't get a call back contact them and ask for feedback.

As others have said, look at your expenditure. A TV is absolutely not a necessity and on things like phones you need to "cut your cloth".

Do you live off expensive ready meals/takeaways? Do you know how to shop/eat cheaply?

There are plenty of things that students can do for little or no expenditure - it doesn't all have to be about flashing the cash. Whatever stage of life you are there will always be those who seem to have more to throw around than you do.

plunt

hmmm most people would disagree with this idea but going to say it anyways.... but would require you to be strict on your budgeting and spending. so if you will just get too tempted, dont bother.

but i know personally i have a 2.6k interest free overdraft facility with halifax. (i up this as often as possible) this entire sum is actually sitting in a savings account with santander earning 5%. This means i earn 130 pounds of interest a year. I also have a halifax reward account earning me 5 pounds a month (this is after tax so most likely as a student you would get 6.25 pounds a month) every time i transfer in 1k (i transfer it back and forth within the same 5 minutes). meaning 205 pounds a year in interest (roughly)

Therefore my idea may be to try and either get a larger over draft and SAVE IT!. Or using an account switching service (be careful as usually loads of criterias) and get switching rewards such as 100 pounds and so on as people have mentioned on the forums.

It is a messy way to slowly get out of it but upping you income via earning interest may help you!

also a note to everyone, when discussing with my friends their account balances, it is common for students to say their available amount (therefore including their overdraft) rather than their true balance. It is a common joke but it is true in the mind set. scary thought.....

best regards

p

Sophie4120

plunt wrote: »

I also have a halifax reward account earning me 5 pounds a month (this is after tax so most likely as a student you would get 6.25 pounds a month) every time i transfer in 1k (i transfer it back and forth within the same 5 minutes). meaning 205 pounds a year in interest (roughly)

If the OP had a spare £1k knocking around, i'm sure they wouldn't be worrying so much about their overdraft!

I don't disagree with your idea (it is something I currently do) but I can only afford to do it now that I am a paid postgrad - there is NO way on earth I could have done it as an undergrad - not when the loan doesn't even pay rent.


OP - I know you say you don't want to be stuck in your overdraft - but do bear in mind that most banks give you an interest-free grace period after you graduate, normally for a year. That should give you a reasonable amount of time to start earning and paying it back, especially if you continue to live on a budget. I am not advocating living in your overdraft - but it is not necessarily the end of the world if you find yourself in that position, as long as you learn the importance of money management and paying it off within a year of graduation.

Derivative

Sophie4120 wrote: »

I don't disagree with your idea (it is something I currently do) but I can only afford to do it now that I am a paid postgrad - there is NO way on earth I could have done it as an undergrad - not when the loan doesn't even pay rent.

It is manageable but it does mean you have to live frugally.

Keeping a balance of £1000 and not going below it is just as easy as keeping a balance of £0 and not going below it. Your expenditure should depend on income, not on wealth.

Actually, it's easier, because you get interest on the £1000.

If your balance is consistently going down, term to term, something needs to be done because that's not sustainable. Be it asking your University for financial support, applying for grants, asking parents if you're in one of the higher support bands, looking for part time work, medical studies, etc.

You have to do something.

plunt

Sophie4120 wrote: »

If the OP had a spare £1k knocking around, i'm sure they wouldn't be worrying so much about their overdraft!

hence why i was implying that either he gets it extended or moves to another provider who will offer a higher over draft. the final option would also to have multiple student accounts which SOME, not all, allow. i believe you can have a halifax, barclays, and a natwest/rbs one (however with rbs/natwest you need to use the debt card 3 times a month atleast so just buy a bottle of coke at tesco 3 times a month with it!)

please keep in mind anyone reading this i am not advising this to build up debt! i am advising it if you can budget and manage your finance very well and just use this as a free form of money to put into a savings account and NEVER spend it!!!

I think you would agree with this Sophie4120 right?

best regards

P