As a student, your personal finance can be a difficult subject to master. On one hand, you have your studies to worry about. With this, there is a need for books and materials, a premium on your time due to classes and homework commitments and an overriding need for concentration on your studies as top priority. On the other hand, there is a student lifestyle of socialising and self sufficiency that is also extremely important to your growth and development. Basically, you want to study, work and have fun and something has got to give.
A big part of reaching this balance is to take on the student credit streams that are made available to you. Lenders are well aware of the various stresses that you’re under and will do what they can to use these pressures to sell credit. Students are offered favourable rates of interest and extended repayment timescales; these can be extremely attractive to young people who see their future as littered with opportunity. There’s not just your student loan to consider, which doesn’t require repayment until you meet an income threshold. There are also student deals on credit cards, overdrafts and store cards. However, due to the nature of the student lifestyle, making any repayment which is more than the minimum can be very difficult. Naturally, if you don’t pay more than the minimum each month, the interest on the outstanding debt can accumulate quickly and the overall amount of debt that you’re under can grow out of control.
Consolidating your credit card debt with a debt consolidation loan can give you a lower monthly repayment and save you money on interest and other charges. The interest rates charges by credit card companies can be extremely high and those rates charged by store cards can be even higher. A debt consolidation loan can clear all of this debt and replace it with a single loan that offers a far better rate of interest. For anyone facing mounting debt problems, student or otherwise, the very first piece of advice would be to seek help from a professional debt advisor at the first sign of trouble. An impartial, professional debt advisor will be able to take you through the best debt solutions for someone in your situation.
There are a number of debt solutions on the market, each with its own benefits. Having an understanding of each is essential in making the right choice. Debt management companies will be able to make a recommendation based on your circumstances but the decision is yours to make, so know where you stand and the options open to you. There are free, no obligation tests that can help you to define the right course of action and these can be taken quickly and easily online. An example of this would be the financial health check at www.debtsolver.co.uk. Student debt is a difficult situation as your student loan won’t actually be covered by bankruptcy and similarly severe debt solutions. It’s never too early to tackle the burden of student debt so don’t put it off any longer.