STUDENT WITH A MANAGED LOAN

Hey! I started Uni with a student account at HSBC which served me well, the rail cards a real gem. I'm from the south east and study in cornwall so i save about 30 quid per rail trip.

My real problem is that i was silly and got into progressive debt while here at uni. Maxed my overdraft and student credit card, and had a previous personal loan. Flustered and desperate for help i spoke to my bank and they recommended a 'managed loan' which is their speak for consolidation i presume. My student overdraft HSBC credit card and personal loan were wrapped up togetther in a managed loan at a much lower rate. The only problem being, for which i kick myself now, my 0% overdraft was wrapped up in that too, doh!

Financially now i'm stable but find it very difficult to make ends meet each month. My rent here as a student is becoming crippling. The house prices in cornwall are just incredible and the rents have jumped accordingly, it's difficult to find student digs for less than 70/week excl

I'm relativley lucky i pay 75/week inc and have an understanding land lady.

What can i do? HSBC say i can't have an overdraft because of my managed loan, and i have a credit card (500 limit) which is almost maxed out. I've applied for an egg card for the 0% balance transfer thang, so that should cover my card, but i keep slipping over my student account limit and get charged accordingly, which is reducing my pitiful income even more each month.

Help!

Replies

  • Lucie_2Lucie_2 Forumite
    1.5K Posts
    Part of the Furniture Combo Breaker
    Do you have a job? Anything you can sell? Think books, clothes, CDs, DVDs.......
    Have you thought about changing bank accounts? Banks are desperate for students to open accounts with them, on the theory that you are likely to stay with them forever. I changed from HSBC to Barclays when I was a student & got a really good deal.
    You need to start thinking about getting hold of some money from somewhere other than banks & financial institutions. Does your uni have a welfare fund?
    Have you done a realistic monthly/weekly budget plan? Writing it all down will help you to see where you can cut back.
    You mention trips home - how often do you go? Cutting back on the train fares will save you some money.
  • Bab_2Bab_2 Forumite
    3 Posts
    Cheers for your reply Lucie,

    I've got a job, i've been working part-time for a Bookshop in the past year, only problem being that they can't give me full time hours this summer due to 'budget constraints'.

    So effectively i'm looking for a second job on top of this one to make ends meet.

    I've definitely thought about changing bank accounts, but i'm not sure how much better off i'd be due to the fact I have a managed loan. Will this affect my standing with other banks?

    I did the budget plan in Martin's Money Diet, and yeah i was shcoked to see how much i was spending. I suppose really i just need some advice on how to deal with the banks...

    Can i downgrade my HSBC account to a current and then get a student account elsewhere?
  • Lucie_2Lucie_2 Forumite
    1.5K Posts
    Part of the Furniture Combo Breaker
    Bab
    I changed my bank account just after graduation - HSBC offered me a graduate loan of £3,000, but it had to take into account my overdraft (about £1,000), effectively leaving me with only £2,000. On a whim I rang Barclays who offered me the full £3,000, as long as I switched my account to them; they were quite happy to take on my overdraft. The student adviser told me they take on student accounts as usually you stay with them for a long time. He was right, here I am 10 years later, still with a Barclays current account!
    All I can say is give it a try - go in & talk to a "human" face to face & they will be more likely to consider it.
    I'd look elsewhere for a full time job - if the bookshop can't give you full time hours then your loyalty has to go out of the window I'm afraid. You never know, they might rethink if you actually resign. Depends how valuable you are to them - do you go in & cover at short notice/help out when necessary? There must be people taking holiday over the summer - don't their hours need covering?

    A last resort is to considering going back home. Can you transfer your degree to a uni near home so that you can live at home & save some money that way?
  • Bab_2Bab_2 Forumite
    3 Posts
    I think it was as Tom Wolfe once wrote, "You can never go home..." Cheers again for your reply Lucie. I've lived away from home since I was 16 and my families have 'swelled' in a catholic style-ee, so it's not an option for me I'm afraid. Nice idea tho.

    As for the switching bank accounts idea, definitley gonna go for that one. Looking for extra work too at the moment. It's tourist season so should be able to find a few things even if it means scrubbing toilets as a chamber-bloke in a local hotel.

    I'll let you know how it all goes, cheers for the help!
  • Lucie_2Lucie_2 Forumite
    1.5K Posts
    Part of the Furniture Combo Breaker
    No, I don't think I'd have gone back home from Uni either, but you never know, it might be an option for some people. Sometimes the most obvious answers are staring you in the face.
    There must be loads of seasonal work going - theme parks, tourist attractions, hotels, restaurants, ice cream kiosks........you're bound to find something. You sound motivated & that is half the battle with seasonal staff, they're often unreliable so make yourself ultra-available & keen.
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