Is it bad finishing the 2nd year £800 overdrawn?

2

I have made a really detailed budget, (which still allows flexibility in things like how much I spend on going out and clothes per month) so I think I will definately be able to stick to it, but in doing so, I will finish the year £800 overdrawn at the end of May.

Is this normal/okay?

This is a budget on the basis of me not having a job throught the whole year. I am trying to get one that will fit around my studies, because I also want to learn to drive, but I only want 10 hours a week work maximum. But say if I don't get a job, what do you think?

Reply 1

girlinlove

It's okay, just make sure you repay your bank as soon as possible just let them know.

Reply 2

hypocriticaljap

2

As long as you've got a student overdraft you'll effectively have 6 years to pay it off interest freeb based on 3 years undergraduate account followed by a 3 year graduate account with a reducing overdraft.

Reply 3

robbo3045

17

Try £1700 in overdraft after travelling during the summer. And I'm never in my overdraft. Just make an effort to pay it off as soon as possible! With wage and student finance should be paid off soon.

Reply 4

DarkWhite

17

It's not necessarily bad, since it's an interest-free overdraft and you'll probably get a graduate account with an overdraft limit which decreases slowly so you have time to pay it off.

But it would be an idea to try and keep out of your overdraft, simply because you might end up in a situation you didn't expect where you might need the money but can't get to it because you're well into it as it is.

If you need extra money, try and just avoid spending money on clothes. Go to the outlets now before you get to uni and you'll get everything mega cheap. the Levi's outlet in Cheshire Oaks does things like 2 pairs of jeans for £8, and they've lasted me like a year and a half now without even a tear. You can get funky tees for a fiver each and the like; just stock up before you go.

Obviously it's the driving which is going to be the biggest spend here, since lessons will cost you somewhere around the £20 mark for an hour. Shop around for a cheap instructor, but when you get in the car, make sure their license is pink not green, otherwise they're learning instructors, and should be charging you reduced rates imo (that's what my instructor used to do - it's only fair). See how well you can then do without a car and everything. It's good to pass your test when you're young, but if you don't need the car, it might be worth avoiding, since the insurance alone will cost you that overdraft, let alone the car itself, MOT, tax and fuel.

Reply 5

Phugoid

*Tears and Butterflies*

I have made a really detailed budget, (which still allows flexibility in things like how much I spend on going out and clothes per month) so I think I will definitely be able to stick to it, but in doing so, I will finish the year £800 overdrawn at the end of May.

Is this normal/okay?

This is a budget on the basis of me not having a job throught the whole year. I am trying to get one that will fit around my studies, because I also want to learn to drive, but I only want 10 hours a week work maximum. But say if I don't get a job, what do you think?

My philosophy has always been that, during term time, university should be your full time job.

The government very kindly paid my fees, as well as a loan and bursary, in order for me to go to university, and I sort of think that they're hoping that I'll use that money to work to the best of my abilities at getting a top degree, getting a decent paid job, and become a high contributing member of society.

It's only fair, therefore, to focus my attention on it, not only for me, but for the sponsors who invested so much in me.

In first year my loan and bursary were suffice. But in the summer that followed first year, I learnt to drive, got a car, and got a girlfriend, so my expenses increased dramatically, and I found myself 300 quid into an overdraft before I even started 2nd year. At the end of 2nd year I was around 800 quid into it, like you will be.

It's not too bad, as student overdrafts are easily repayable and there is no interest on them.

What I do is work summer placements during the summer, full time, for 8-12 weeks to attempt to pay off my debt, and that usually leaves me free to work hard at uni another year without damaging my chances of great results by having to work part time alongside it.

It should be fine! (Y)

Reply 6

Hravan

10

Heck, I'm already £500 overdrawn and I haven't even started at university yet!

I'm not getting a job during term time. I'm just going to wait until next summer and get a job to pay it back then. There's no rush on paying back your overdraft, and depending on which bank you're with, even after you graduate it should still stay interest-free for at least a year. So don't panic!

Reply 7

cor898

1

well its not good, but youll be fine

Also, what do i know :awesome:

Reply 8

Dionysus

15

A lot better than I did. I was £1250 OD. I'm now pushing £1600 in my final year. It's the reason the OD is there. On some accounts it goes as high as £3k interest free, although I wouldn't want to be quite that far under.

Reply 9

robbo3045

17

Dionysus

A lot better than I did. I was £1250 OD. I'm now pushing £1600 in my final year. It's the reason the OD is there. On some accounts it goes as high as £3k interest free, although I wouldn't want to be quite that far under.

I've got the Halifax £3000 overdraft. When I clear it... I'm going to set up instant access high interest savings account - and make money off my free money. Made like £150 from this last year, with only a £2000 overdraft

Reply 10

dunnill207

I was 1500 in my overdraft in april after finishing my first year...not a great situation but was stupidly running a car which was expensive....worked all summer and still enjoyed myself and worked all of the overdraft off...admidently i only have about 100 pounds left which i have spent on stuff for my room but will live off my loans and have got rid of the car...just get a summer job...part time job's are rubbish at uni!!

Reply 11

miranda13

10

Phugoid

My philosophy has always been that, during term time, university should be your full time job.

and what do you do if the government don't give you enough money to live on? i agree that it would be nice to spend all my time on uni but sometimes that's just not possible, if your loan hardly covers accom costs then you're pretty much screwed

Reply 12

Phugoid

miranda13

and what do you do if the government don't give you enough money to live on? i agree that it would be nice to spend all my time on uni but sometimes that's just not possible, if your loan hardly covers accom costs then you're pretty much screwed

Well I don't know about other unis, but our exams finish around the end of may, and we don't start back until the end of September, which leaves roughly 5 months to work your little ass off and save up enough money to fund the next 7-8 months of uni. Or work for 4 months and enjoy a month of totally relaxing/going on holiday.

I only worked 8 weeks this summer, and come next week I'll have cleared my 800 overdraft and be back in the black. Had I worked 4/5 months, I would have around +£2000 in my account, and that would be plenty to cover accomm. costs in combination with your student loan, etc.

And if you spend all your time on uni during term, your awesome grades should make it REALLY easy for you to get full-time summer placements in decent jobs relevant to your degree.

That's how it works out for me, anyway. If it doesn't work out that way for you, I'd suggest you're living somewhere too luxurious, or frivolously spending elsewhere...

Is it bad finishing the 2nd year £800 overdrawn?

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