Small debt, big worries.

Anne1234_2

Hi everyone.

I was wondering if anyone could give me some advice. I have had a small debt for quite some time which currently amounts to £630. It is on a Santander cc. I am on a 0% offer until next November and can currently make the minimum payments no problem. I am a healthcare student and receive a small bursary and small % of student loan.
I realise that I should not have started studying with a debt but this is the final year for bursaries from the NHS so even if I'd deferred my place I would not have been able to get funding from next year.

My issue is I will not be able to make the minimum payments after the offer ends.
I am quite new here but here is my rough SOA..

Bursary/loan; 530 per month;

Rent 360
Food 130
Phone 8
Card 6
- 26 left. (This is for clothes and toiletries, I cannot afford entertainment or socialising)

The amount fluctuates slightly over the year, for example I get slightly more from Feb - April due to how the loan is spread out. During summer I receive slightly less. I know I have to get a job, however my placements are full time so it is hard to hold a job down alongside these and coursework. Also it's a matter of finding a job, there are not many in my area.
During summer I will work but I plan on using the money to boost my monthly income in years 2 and 3.

As it stands I am ok on the 0% offer and I also have an rbs card but they have stopped offering 0% deals so no chance of transferring it to them, also no chance of another card being a student.

So if by November my debt is still there which it likely will be how do I negotiate with Santander?
Basically what I would want is for them to freeze the interest until I graduate in 2 years time....
Would I have a chance at converting the debt into a loan so that I do not have chance to use the card, and just pay a minimal amount each month?
Advice would be appreciated as I don't know where to start.
Thanks

Dobbibill

If you ask them to freeze the interest and not make the minimum payment then your credit report will reflect this for 6yrs. Depending on what you pay to them will depend if they mark you as an arrangement to pay, late payments, default etc etc

If you get a loan, the same will happen if you do not meet the payments. For what it's worth, consolidation doesn't work and you are just digging yourself in deeper with this approach.

You need a job - look at 24hr fast food restaurants, they are very accommodating with students and have a variety of PT shifts to suit. Look at making craft type things or other working from home options.

Nebulous2

Not making minimum payments will have a big impact on your ability to get credit in the future and would be a last resort.

I'd stop spending on it. Cut it up or hide it if you can't resist. Then at least it will drop by the minimum payments each month.

Being a student nurse is tough. When I did it we were employees and were paid every month. We also got a room in the nurses home for much less than rent anywhere else.

Unfortunately a job looks like your best option. Lots of students sign up with agencies and do shifts in hospitals or care homes. Earning over the summer your preference may be to save for years 2 and 3, but your credit card may be a bigger priority. It doesn't have to be one or the other. You can do both. If you put £100 in savings to make years 2 and 3 slightly easier, you could put the next £50 to your credit card for instance.

uk1

You are in a tough situation. This is a cash-flow problem.

You said: >>During summer I will work but I plan on using the money to boost my monthly income in years 2 and 3.<<

Perhaps the least worst option is to use that cash to pay the card and then based on your protected credit rating seek a further zero interest credit card for the cash you might need in years 2 or 3?

Might that be a better option?

Good luck with your studies, and well done for being so responsible with respect to your current credit / cash flow challenge.

Jeff

agrinnall

Do you have a student account with a free overdraft? That might be enough to cover your minimum payments.

The other option to consider is whether you have any family or friends who might be prepared to offer you a loan that wouldn't be repaid while you are studying.

Anne1234_2

Unfortunately I don't think I'm able to access an overdraft due to completing a degree previously and using an overdraft facility then.. plus the interest rate on the overdraft might be higher? I may ask the bank because if I am allowed an overdraft I could look to use this to clear my card .. but then I could be back to square 1 at the end of my course.
I am a mature student (32) and sort of feel hopeless thinking about applying for part time work as I'm up against all the 18/19 year olds.. bar work would not be practical
I also have no family or friends I could ask for financial support...
I don't see the point in speaking to Santander yet, I'm just considering the worst case scenario for next year when the offer ends.
Thanks for replies

bigadaj

I think you just need to get out and get a job for a few months.

The debt is effectively 100 hours at minimum wage, so if you find soemthing in evenings or weekends, say 10 hours per week, and do this for 10 weeks you would be there.

uk1

Could you not get part time work with an agency as a carer?

Jeff

ViolaLass

Why are you getting a small percentage of the student loan? Because you're viewed as still being dependent on someone? Are you really and if so, could they help?

CakeCrusader

You need to speak to your university/college and ask for help from the access to learning fund.

Yawn

Anne1234 wrote: »

Unfortunately I don't think I'm able to access an overdraft due to completing a degree previously and using an overdraft facility then.. plus the interest rate on the overdraft might be higher? I may ask the bank because if I am allowed an overdraft I could look to use this to clear my card .. but then I could be back to square 1 at the end of my course.
I am a mature student (32) and sort of feel hopeless thinking about applying for part time work as I'm up against all the 18/19 year olds.. bar work would not be practical
I also have no family or friends I could ask for financial support...
I don't see the point in speaking to Santander yet, I'm just considering the worst case scenario for next year when the offer ends.
Thanks for replies

I don't see any reason why you wouldn't be able to get a student account with an interest-free overdraft. Your age shouldn't matter. I got mine in my late 20s when I was doing a graduate degree. If your bank says no, you could go to another?

An alternative might be applying for a commercial student loan. A friend of mine did that for his masters. Not as cost effective as a job, but in the circumstances perhaps more feasible?