Financial advice when moving to University (considering my current financial situation) - HotUKDeals
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Financial advice when moving to University (considering my current financial situation)

Sharpnel Avatar
8y, 2m agoPosted 8 years, 2 months ago
I'm off to Uni at the end of Sept and I'm looking for the best way to handle any debts and save money by depositing/withdrawing money to/from the right accounts.

At the moment, I have a current account with Barclay's which has a £300 overdraft limit, a Barclaycard with an £800 credit limit (which I'm about £500 into) and a Barclay's online savings account (eSaver).

Should I look into doing a balance (or super balance) transfer, or is this only recommended if you don't already have a plastic debt? What about opening a new current account with a large 0% overdraft facility in order to pay off my existing debts then doing a balance transfer with the remainder and depositing that into a high interest savings account?

I'm new to all this but I have done a bit of research into balance and super balance transfers and 'stoozing'. One thing I don't understand is, say you transfer £3000 from a credit card with 0% on balance transfers to an Egg Money Hybrid card then onto your current account or savings account, am I right in thinking you would have to make sure you were not paying an APR on the credit card because that would surely mean losing money? Are there cards with 0% balance transfers AND 0% APR?

Any advice welcome, thanks.
Sharpnel Avatar
8y, 2m agoPosted 8 years, 2 months ago
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#1
what about your student loan - best thing is to just live on this
#2
ciaozammer
what about your student loan - best thing is to just live on this


Student loan.....not sure how much you can get but interest you pay on that is around 3.9%
Draw it all down and put it in an ISA which can pay around 6.5%
Good way of generating some free money :thumbsup::thumbsup:
#3
yeah but you need to live ;)
#4
Well you get a tuition fee loan but that goes straight to the University, you get a grant of £2,835 (no need to repay), a one off bursary of £1,315 (also no need to repay) and a standard maintenance loan which is £3446 and doesn't even cover cost of accommodation.

So in the first term, after rent is paid, I'll have £2,131 for 16 weeks. In the second and third terms, this will be reduced to £816 as the bursary is a one off. I suppose if you spread it out it's £1,254 but still, with all the costs of living any help is appreciated.

I think I may just open a current account with a free overdraft and pay off the credit card so at least I'm not losing money. Is this a good idea or is there a more effective way to do it?
#5
ok
so you will get 2,835 +1315 +3446 = 7595
that's loads!! more than many people earn after tax
I recommend you get into good habits now and don't get anymore debt.
I was at uni 2 yrs ago and I lived on under 4k a year everything included - and I felt like I had plenty
You just need to be careful as so many people get access to money and suddenly they have spent it all and never get out of debt.
Good luck with everything - what are you going to study?
#6
also i recommend trying to get a job in a supermarket or something a few hours a week. - they are incredibly flexible eg you could go in and work on a sat moring for 5 hours + the great thing about the likes af asda etc is that you can get about 10% of your shopping if you work there - even if you only work a few hours a week.
banned#7
Sharpnel, you just need to think percentages.

The best method is the one where you pay back 0% and you save 8+%. So any debt you have you need to get into a card/overdraft account where you pay no money to have it there.

Now there are ways of making cash from your lack of it, by transfering the total balance of 0% accounts into high interest saving accounts (isa's usually work out best). But the trick here is to make sure the funds are returned to the accounts before the 0% rate changes, else you will be hit with a hefty fee.

Now keeping in mind 0% overdrafts tend not to charge for withdrawals, where as 0% balance transfers will charge an admin fee (usually 3%) so if transferring into a savings account you need to ensure you will recoup this cost.

Keep in mind you have a tax allowance of £5355 per year, that means you can earn this much before you need to pay tax, so the part time job thing is a good idea. Earn whilst you dont need to payout :thumbsup:

However check out some of the following sites for more info

[url]www.moneysavingexpert.com[/url]
[url]www.fool.co.uk[/url]
[url]www.moneysupermarket.com[/url]

Just keep in mind if you change the word 'credit' where it appears to 'debt' it makes the deal look less appealling, but its the truth.
#8
I suppose you're right,ciaozammer. After rent it works out at £95 a week for 40 weeks. I finish my shifts at Tesco on the 23rd but I'll be going back during holidays to earn money if possible. I can't transfer though because the nearest Tesco is a Metro and that's over 6 miles away in Morcombe, there's also an Express about 8 miles away but I'd rather not work in either of those. I suppose I have an advantage when applying to other supermarkets but I honestly wanted to get away from that area of work and try something new. Could try and make money by teaching guitar to other students.

Anyway, what is the cheapest way to pay off my existing credit card instantly without my own cash? Is it to use £500 of an interest free overdraft?
#9
Thanks for the advice, Foosball Chum.

Haven't seen fool.co.uk, I'll check it out.
#10
well if you have an interest free overdraft then you should use that to pay it off right now - that will be the cheapest if it is interest free.

if you do a balance transfer from another card - you can often end up paying a fee of 3%

I recommend you pay it off with cash if you can - cc debt can grow so easily
If you have the cash - the cheapest way will be to pay it off! - it's the best habit to get into if you can + your loan will be enough.

oh and when you get to uni - try the students union -because they often have a jobs service for the local area.
don't get too big a job though - don't forget you have to study ;)

Have a good time at uni - I hope you enjoy it
#11
Appreciate your help, ciaozammer.

I'll make a decision today about a student account and pay off/cancel my credit card ASAP. I agree about not overdoing the hours with a p/t job. I'll be happy with 10 hours (or £50).

Thanks again :)

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