Student overdrafts
Comments from students...
Money is the root for all evil, makes the world go around or can’t buy you love, depending on your relationship with it.
It will also be one of your favourite topics whilst studying and comes in rather handy for day-to-day things such as beer and kebab purchase.
Here are a few observations from practising students on the pleasures and pitfalls of the filthy lucre.
As this tale explains, be prepared for the worst. Most people don’t budget in advance and most don’t shop around for the best deal for them from banks. So do both and you might avoid what happened here:
“I didn’t have an overdraft until my third year. I didn’t have a loan in my third year, so it hit me. I was working and actually doing what most other students do – having to pay for everything myself – and I really struggled. I was getting progressively more overdrawn. I got to the limit and they wouldn’t extend it any more. I remember crying on the phone to the bank saying ‘I can’t pay my rent’. This was before I got the first pay cheque from my job, and I hadn’t got any money. She wouldn’t let me have it. They were really bad, whereas my other friends just rang up and extended it.”
Also, it’s wise to have a back-up plan in case of mistakes like this:
“I had my overdraft at £500. I had a little bit of money left in there and when I went to take it out, they wouldn’t let me. They actually reduced my overdraft. They managed to sort it out for me but it was weird because, for about 3 weeks, I didn’t have any money. I’ve extended it now and had no problems since then, but it was just a bit dodgy at the time.”
Note from the TAG team: Student overdrafts are useful to fall back on, however, as tempting as extending your overdraft is, be aware that you will have to pay your overdraft back at some point. Always read your bank's terms and conditions.
