I would only go into overdraft if I knew I could pay it off before it passed the point of going into unplanned overdraft (i.e. It's no longer interest or fee-free - this is something you should avoid going into at all costs cause the fees and interest build up fast on unplanned overdraft)(Original post by wickedisgood)
I'm living away from home so the rail card would likely come in handy, and although I do have some savings in my current account I don't have like he thousands that some people on this site have lol.
So it's possible I may have to dip into that at some point because I won't have much left after accommodation when it comes to my student loan, but I was wondering whether, if you have the overdraft, does it make more sense to use that first or to use up my savings first and then go into using the overdraft afterwards (if I need to)?
You can either pay off your overdraft by using your next instalment of maintenance loan, getting a job to make ends meet (as long as your studies don't suffer as a result - so maybe work during the summer to pay it off) and if you're nearing your maximum planned overdraft, I would I pay part of it off with some of your savings (but I would try to leave this option til last, because having savings after you leave university is something that can put you a step ahead in terms of if you wanted get a car or save enough to rent(or even have a deposit to buy) a place after uni.
Most people in uni don't budget and spend money excessively on pointless things (you need food to survive; you don't need five bottles of different types to survive).
As long as you watch what you spend and make sure you don't go into unplanned overdraft, you'll be fine.
Also if you're from Wales, SFW have a partial cancellation policy of loan debt on your maintenance loan debt. What this means is that if you've taken out maintenance loan, they will take off £1,500 from your debt after your first repayment (which can be as little as £5). So for instance, for me, I'll be living at home, in Wales, so my maintenance loan per year is £3590. In total over four years, I will owe £14,360 and they will automatically take off £1,500 from my debt when I request to take off £5 (making my total debt now £12,860).
This is a pretty nice little thing that happens.
HSBC or Santander: Which is the better Student Bank Account?
|Why bother with a post grad? Are they even worth it? Have your say!||26-10-2016|