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Archive for Student debt

Dorm Decoration

Tuesday, December 4th, 2007

It is amazing how many parents invest tens of thousands of pounds into their student’s education without ever thinking about their living arrangements. In fact, many students are left to scramble for whatever they can afford, and decorate with left over pieces and junk.

Our environments play a vital role in our emotional wellbeing.  Most parents know this. The concept of borrowing a secured loan, or a mortgage, to redo a teen’s room, a den for entertaining, or the basement, makes common sense.  But, parents rarely see the importance of treating a dorm with the same respect and concern.

Students need a place to unwind and relax, but it must also be an individual statement that lets them continue to grow emotionally, amid the confliction and confusion of a dorm, or student housing.

Student housing décor goes far beyond picking a wall colour and a couch. Many parents are shocked to realise that student housing often lacks a respectable bathroom.  Adding a pure water dispenser, a new toilet seat, and fixing the window coverings can be expensive, but they are vital to a student’s well being.

A secured loan is the best way to do this. It frees enough money to do the job right, in the least amount of time.  And, it can be paid back quickly, without high fees and penalties, depending on whether the property was leased for one year or longer.

A property that is leased for more than one year offers the parents some leveraging. They may be allowed to upgrade the bathroom, add a heating unit, and improve elements which would be the landlord’s responsibility if the housing was a permanent residence.

Posted in Borrowing, Consumer Credit, Equity release, Financial products, Home Improvements, Homeowner Loans, mortgages, Personal loans, Property, Remortgaging, Rental property, Secured loans, Spending, Student debt, UK Finance | No Comments »

Back To School

Wednesday, November 21st, 2007

One of the most expensive times of year for the parents of teens is August. Back to School means arguments about the difference between a good outfit, and an in-style outfit. The difference can be £500.

Adding books, tuitions, bus passes, sports, after school events and social outings can cost more than one month’s income. Few people have enough money to cover a student’s entire list of wants and needs. This problem is compounded when a family is trying to send two or three teenagers to school at the same time.

Many students earn their own money to help cover school costs. But parents need to be aware that others apply for credit cards as a form of unsecured loan without their parent’s knowledge.

Banks actively recruit students. Many students believe this is free money, a perk. They run up the limit, and then accumulate interest for months, before parents learn of the debt.

A student can easily run up an unsecured debt of £5,000 in a matter of weeks. This debt can haunt parents for years, and ruin a student’s consumer credit information report.   Parents need to inform their children about the responsibilities and risks of a credit card, before the students are forced to take out a second mortgage or debt consolidation loans to pay their children’s debt.

Back to school is a great time to teach children that fashion does not define a person. It will not make them popular, but it could put them in debt.  There is no reason why a student cannot be taught about APR and interest rates, debt management on mortgages and loans, and of course responsibility.

Posted in Bad Credit, Borrowing, Budgeting, Consumer Credit, Consumer debt, Credit Card, Debt Consolidation, Debt management, interest rates, Personal debt, Personal loans, Student debt, UK Finance, Unsecured loans | No Comments »

Start The School Year Right

Tuesday, October 23rd, 2007

Almost every student starts their school year with enough money to last the year. This money is usually borrowed. However, once students start the school year they forget how to budget, and that they must carry this debt for years.

Any bar in a university district will tell about friends who buy expensive rounds of drinks for all their friends, or shops who see the same students day after day buying clothes or shoes.

New friends, and peer pressure can make the most level-headed student careless with their money. Many students feel the pinch because they need friends. They need to recreate the network that helped them survive school.

Others are stepping out for the first time. Faced with the responsibility of being an adult, and the excitement of being independent for the first time, may young adults go punch-drunk.

This lasts for a month or two, then the reality hits. They look at their budget and realize that they won’t survive until spring unless they tighten their belts.

Student loans can take decades to repay. They can make it difficult to apply for a mortgage, own a home, and in some cases, many young adults claim that their student loans are preventing them from starting a family.

The best debt management program is a strong budget.  The next is avoiding peer pressure and staying away from social situations where you may be encouraged to spend money, or to treat a whole table of friends.

Remember, it is possible to end the school year without acquiring more debt, or needing to ask your parents to take out a mortgage.

Posted in Bad Credit, Borrowing, Budgeting, Consumer Credit, Consumer debt, Debt management, Personal debt, Student debt, UK Finance | No Comments »

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