With the rising cost of university fees and the popularity of student loans, it’s no surprise that most students in the UK graduate from university with around £26,000 worth of debt. Course fees, equipment and books, living costs including student accommodation, bills and the all-important socialising fund can all add up to leave students finding themselves deep in debt when they finish university and make their way out into the big wide world.
With average yearly tuition fees ranging from £6,000 to £9,000, students in England and Wales are often forced to take on part-time work alongside their studies, to fund their university degree. Add to this a student loan, which will barely cover your living expenses, let alone that shopping spree you’ve planned in H & M this weekend, and you have yourself a very good recipe for student debt. Students are a social bunch; it’s nigh on impossible to live in a halls of residence without being involved in every party and night out that takes place. All of this is a strain on the already stretched student budget and you may find yourself living on beans on toast, without the beans, for most of the term!
With more and more of us in the UK studying for a degree, there are less graduate job openings available to us when we leave university. Already crippled with thousands of pounds worth of debt, we struggle to find meaningful employment that relates to the subject we have just spent four years studying, whether that’s history or mathematics. Most of us end up in menial office or shop jobs, even temporarily, as a stop-gap to finding a graduate role related to our degree.
Whilst student loans have a low rate of interest, and you don’t have to start paying them back until you earn more than £15,795 a year, you might find that in this economy, you are struggling to make ends meet from pay cheque to pay cheque. Even shop work in places like London could see you earning between £16 – £18,000 a year, meaning that you will be paying a sizeable chunk of your salary towards clearing your student loan every month. This leaves little for rent and bills and even less for social life and luxuries; yes, shopping counts as a luxury I’m afraid!
Payday loans are designed to help you manage your money in the short-term, between one payday and the next. If you’ve had an unexpectedly large utility bill or your car has broken down, or even if you just forgot to budget for your student loan repayment this month, a payday loan can help. Use one of the websites that allow you to compare payday loans online, to see which lender is best for your requirements. Provided you’re in employment and have a fairly good credit history, most lenders will consider you, but it is worthwhile taking time to compare payday loans, as interest rates and terms vary wildly between different providers. Payday loans can even help with a cash injection if, for example, you need to take a day of unpaid leave from your current job to attend an interview for your dream graduate role! Having the financial freedom to chase your dream job will be a weight off your mind and allow you to focus wholly on your important interview!
Of course, as with any loan, it’s important to make your repayments on time. Most payday loans are repayable on your next payday, so don’t let your debt spiral, always clear your payday loan as soon as you have funds available, and then get back to the all-important job of paying off your student loan!
Sarah Fox is a freelance writer who believes that it is now harder than ever to survive on the kind of salary offered after you graduate. Therefore she recommends that if you are struggling to make ends meet, then it might be worth researching compare payday loans to improve your financial situation.