The following is a contributed post:
There are numerous ways that a student might end up in financial trouble. Quite of lot of people who go to university haven’t earned substantial amounts of money before, so when they get a lump sum of £2,000 upwards at once, it can be extremely overwhelming. Couple that with the need to socialise and it can get quite easy to get into financial trouble. Below we will talk about the many different ways students have been known to get into money troubles, whilst also offering a solution.
Fresher’s Week Spending
The opening week of university is a week supposed to be about acclimatising to the rigours of your new course. However, we all know it doesn’t quite work out like that. Introduction classes to certain subjects in that week are not even compulsory in most universities, with most students choosing to ditch class and stay in bed. This is because students partake in a heavy amount of drinking during this particular week, leading to late nights and late morning wake-ups. It is a great way to meet people but financially it can completely ruin your bank account. This is famously one of the best ways to get into debt at university. There are many stories of students that have spent so much that they have hit their overdraft limit before the end of fresher’s week.
Purchasing Presents For Christmas
The majority of students study in a place that is not where they grew up. This means that most of them won’t go back home until Christmas after starting university in late summer. For many this means that the excitement of Christmas does take hold, which can lead to a present buying frenzy. As the second instalment of student finance usually comes in January, a heavy spend on Christmas leaves students in debt over the holiday period.
Putting A Deposit Down On A Flat
When you’re in your current place of residence at university, whether that be a flat or the halls of residence, the bills and food costs of living there can put you on a shoestring budget. Then you add into that the costs of having to sort out your accommodation for the next year, and it can get overwhelming. Most students start looking for their next place around the turn of the year, and depending when their student finance comes in, they may be left in debt after forking out a large sum for next year’s flat bond.
Solution – Borrow From An Ethical Lender
The majority of debt that students rack up is only because of minor circumstances, and sometimes it is even just a case of difficult timing. Some landlords or letting agencies demand that you pay them at the end of the month, which can prove difficult if you don’t get your student finance until a week later. This can leave students without money for a week. The best option in this situation is to find an ethical short-term lending company like Smart Pig who look after students. The benefit of short-term lending is that you get money quick and easy, and you know up-front how much you will need to pay back.