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Student in debt wanting help

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Hi all,

I'm a second year university student and I'm starting to struggle with debt. I started my course with about £3000 credit and overdraft debt. This is now around £5000. I have applied to different banks/credit cards/loans and keep getting turned down. I do have a part time job earning about £140 a week. I really want to consildate my debt and make it easier to manage. Any suggestions would be gratefully received. Many thanks M.

Comments

  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I think in your position no-one will lend you money to consolidate.
    Make the most of your student overdraft and concentrate first on paying off the highest rate credit cards and work your way down.
    Too many applications for credit in a short space of time will seriously damage your credit rating.
    Also have you applied for a student loan?There is no mention of this in your original posting.
    Try to work out why the debt is increasing eg is it cheaper to live out of halls in a shared rented house or shop at Lidl rather than Tesco.
    It may not make a great deal of difference in the short term but will work in the longer.
  • moneygum
    moneygum Posts: 23 Forumite
    Hi marinebiostudent - I wonder what you are doing at uni ;)

    Anyway I agree with ejones I think you will find it hard to get a consolidation loan but if you can then I would advise as it can really help you get back on track.

    Stay calm and enjoy the rest of your time at uni. By the time you leave and get a full time job it will be much easier to pay off and you could probably get the consolidation loan at that point.

    On the plus side this isn't what I would call a 'large' student debt.
    :: No Websites or Links in signatures please - FM ::
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    moneygum wrote: »
    you will find it hard to get a consolidation loan but if you can then I would advise as it can really help you get back on track.

    I would have to disagree there, don't consolidate ! All these loans are is a method to tie you up to a particular company for years.

    Of course "your monthly payments will be less", but you will be paying for years and end up paying more in the long run. The temptation is always there that you can afford to buy something else each month now that you are paying a bit less each month. You are then trapped even deeper with the consolidation company.

    DON'T believe Carole Vorderman !!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • I wasn't planning on getting a consolidation loan as such, just a loan from a bank (or similar) to pay off my current debt and make it easier to manage. I do have student loan debt as well and this is not included in the £5000 as I don't really see that as debt as yet! LOL! I was certainly not thinking of going to see Carol Vorderman asI I know that those types of loans are not cost effective. I am a mature student (30) and live with my girlfriend in rented accomodation. Hope that helps with any further suggestions... thanks so far guys!
  • techno_geek
    techno_geek Posts: 419 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Which bank are you with? You might do well to get another student account (for the overdraft) and use that to help pay off your expensive debts, then you can concentrate on clearing your 0% overdrafts.

    I'm a first year, and have several student accounts (I know, I know... save your criticisms and "illegal" comments please) because I'm working on the assumption that I will be living out of my overdraft by the end of my second year... and I'm on a 4-year course!

    It's all budgeted carefully, so there's no real risk of me spending and spending, just that the overdrafts are there to help me when I need it.
    (I'll pay most of them off each summer, but build up the debt again during term-time.)
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Which bank are you with? You might do well to get another student account (for the overdraft) and use that to help pay off your expensive debts, then you can concentrate on clearing your 0% overdrafts.

    I'm a first year, and have several student accounts (I know, I know... save your criticisms and "illegal" comments please) because I'm working on the assumption that I will be living out of my overdraft by the end of my second year... and I'm on a 4-year course!

    It's all budgeted carefully, so there's no real risk of me spending and spending, just that the overdrafts are there to help me when I need it.
    (I'll pay most of them off each summer, but build up the debt again during term-time.)


    actually you are not the first student to have several 'student a/cs' with free overdrafts.
    however, several banks have been known to take exception to this and recalled their OD facility at short notice.. so take care.
  • greyteam1959
    greyteam1959 Posts: 4,710 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Here we go again loans loans loans.......
    C'mon guys live within your means......
    Cut down on your expenditure and leave the loans alone (!!)
  • jinkssick
    jinkssick Posts: 1,323 Forumite
    Part of the Furniture 1,000 Posts
    forget a loan. just pay off the highest credit card. itll be good if you could move everything as a balance transfer to a card that you have. so you can pay it off in the trial period and nothing goes to ''them''.
    Save saynoto0870.com in your favorites, and stop giving companies more £££ dialling 0870 numbers when you can dial freephones or cheaper alternatives
    call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
    Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"
  • tripled
    tripled Posts: 2,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If you are really stuggling, you may be able to get a grant from the university's hardiship fund, but I think they only help if you can't afford to pay essentials like food and rent.
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