Here at Wizzcash, we understand that as a student you can have difficulty managing your money. There are a multitude of reasons for this; books are expensive, as are nights out and the sad truth is that student loans often aren’t generous enough to facilitate a standard of living that perhaps you are used to. Because of these reasons and many more besides some students can turn to a payday loan lender for help in times of financial difficulty. If you are a student and this applies to you, or if you have been or are currently considered securing yourself a payday loan then this blog may be of interest to you.
Our intention herein is to outline for you the options that you have as a student should you need to source yourself some extra financial assistance. Thankfully, there are a great many avenues for you as a student to explore and you should not despair or feel lost if you run out of money before your next student loan instalments. Before we take a deep dive into your options, we will examine briefly the reasons why a student such as yourself may find themselves in need of help.
Reasons Why Students Need Short Term Loans
- Course books and resources, especially in subjects such as chemistry or psychology can be incredibly expensive and new ones can need to be sourced each term. This can be a large drain on your student loan.
- Rent, in areas such as London, Brighton or East Anglia can be incredibly high in comparison to the rest of the U.K and living expenses such as food and bills can be unsustainable at times when other things draw on your financial resources.
- Nights out, socialising and drinking can be very expensive, and we have all, at some point, unfortunately, gotten overly generous with our cards, or ordered excessive amounts of takeaway after a night out with friends. When the morning comes, your financial stability may have taken quite the hit.
These are of course just examples, there are a whole host of other reasons and each individual has a unique set of circumstances/responsibilities/reasons why their student loan is insufficient for their needs. We are now going to outline for you some options that you have as a student who requires a short-term loan. So, if your funds are running low, or if you have a couple of weeks to go before your next student loan instalment comes through, read on to discover your options.
Your Options As A Student
0% Student Overdrafts:
Most banks now offer 0% student overdrafts and these can have maximum limits of up to £3000. This is a good option for many students, and it is likely that you may not get overdraft terms like this again in your life. Furthermore, some banks have student accounts that automatically change into graduate accounts which continue with the 0% arrangement 1/2/3 years after your graduation. Overdrafts should be viewed as debt and used for emergencies or as a short-term credit alternative only. If you have overdraft facilities, it’s important to monitor and control how you use your overdraft at all times.
Student Credit Card / 0% credit card
0% credit cards are commonplace nowadays and many of them come with 0% on all borrowing (up to the maximum limit) for up to 24 months. This means you can borrow on the card and pay no interest until the 0% fee period runs out. When this happens, some people use balance transfer cards, transferring the credit amount to another credit card with a 0% interest period. However, there’s a risk of adding more future credit card debt when doing this. It’s important not to forget that credit cards are a form of debt and what you borrow will need to be paid back, so always monitor your spending to ensure it does not get out of control.
Emergency Funding From Your University
Many universities offer this invaluable service to students who are suffering financial hardship. As a first point of contact you can speak to your student union or the finance team at your University. The specifics of this funding vary between institutions, however you will have to provide some evidence in support of your claim for the funding. As with all funding agreements, be sure to read and understand all terms and conditions before committing to any emergency funding.
Ask Family Or Friends
Asking family and friends for money is never enjoyable. It can be embarrassing and speak to your lack of financial responsibility. However, most family members and friends would rather lend to you than see you struggle. We would recommend asking family first, and then friends. Whatever you decide you can arrange favourable terms and repayment times/structures that suit both parties. Be sure to have this in writing to avoid misunderstandings in the future.
Find A Part-Time Job
This sounds simple, if not a little overly-simple, however if you are experiencing financial difficulties, you should try and find yourself a part-time job. It can be hard trying to juggle your studies and a job, but in the long-run this balancing act is preferable to being lumbered with unnecessary debt. Weekend work, such as waiting tables or working behind a bar, can be enjoyable and offer social and financial incentives for students.
Minimise Your Outgoings
Minimising your outgoings, regarding bills, can be challenging if you are in a shared house, however speak to your housemates about reducing gas/electricity/water usage – at the end of the day everyone will save money! Instead of shopping at Tesco for your food shop, you may try Aldi or Lidl if they are local, cycle instead of getting the bus, make packed lunches when you can, invest in a thermos for coffee, quit smoking – all of these are simply examples of how you can save money as a student!
Student Payday Loan Companies
At Wizzcash, we will offer a student a payday loan if you are in part or full-time employment. There are short term loan companies that might offer loans to students whose only source of income is the Student Loan.
A bank loan is something that should not be entered into lightly, and we recommend that you explore this avenue only once you have exhausted all other options. We recommend you shop around and also explore other options as interest rates can be high and you may find that banks are not keen on lending smaller amounts. All this being said, it might be unlikely that you are eligible for a bank loan unless you are in a form of employment and/or have a very good credit rating.
Speak To A Charity
If your financial problems are quite serious or are causing you a great deal of stress then we recommend that you speak to a charity such as the National Debtline or Stepline (contact numbers and links to their websites will be included at the end of this blog). Rethink also are able to offer those with mental health issues free and confidential advice. These charities are trained to deal with issues surrounding finance and debt management and can provide practical solutions for you so that you can help yourself or source help from an external source.
Always Consider Your Options
As a student, you have many options and alternatives to short term loans. Always consider the choices available to you and the inherent risks when thinking about taking any loan or form of credit. Be sure to research your desired approach before entering into an agreement or before you sign anything. It’s vital to view these as debt and remember that they will need to be paid back. We truly hope that you have found the information in this blog useful.
Numbers that we recommend for debt and financial advice:
National Debtline 0808 808 4000
StepChange 0800 138 1111
Rethink 0300 5000 927