Graduate Loan? Good or Bad?

[Nick F]

Seeing as I have my last ever uni exam on the 23rd of this month and will be graduating the month after I will move over to a graduate account with my bank (abbey)

I was thinking about getting a graduate loan to pay off my overdraft and credit cards and get myself setup with a car and maybe a new PC. I know they do really low loan rates but was wondering if anyone of you have been in the same situation and had any advice.

I am not really fussed about my student loan (12k) as I will pay that off as and when I work. I owe about 2.5k on my credit cards and overdraft.

[Stewart]

Hmm, well, if you think you can safely and easily pay it off, with no hassle, then a loan is fine. However, to be honest mate, if you are the sort of person who gets 2 and a half large in debt on credit cards (I currently owe £200 and will sort it immediately as I don't let debts linger), then maybe you are too comfortable in debt?

Also, as you are already 12 large in debt on the student loan (bloody students, etc) and you are talking about this loan getting you a car (and other stuff), maybe you should just tighten the belt.

How low is the really low rate anyway?

[directhex]

definitely not. "consolidation" loans are a killer - and your overdraft shouldn't be a problem, banks offer interest-free overdrafts to graduates as a matter of course (well HSBC does anyway)

[Stewart]

Easy, Hex. The bloke wants a new car.

[Nick F]

Once I move back down to London I know that getting a job will be easy, and I will be able to manage repayments, I like to get rid of my debt as soon as possible I hate having it around my neck. Abbey offer a 3 year interest free overdraft for graduates so thats cool. Maybe I can just get a small loan and build a new PC.

I read an article the other day about how the new younger generation are okay about getting in debt as they see it as a part of life.

[5lab]

i would say no.

most graduate accounts start with a 1.5k interest free overdraft and gradually make it smaller.. so your overdraft shouldnt be a problem

i'm on a graduate scheme at the moment (with 30-odd others who started at the same time as me). the few of us who had graduate loans (not me) really suffer - they are broke most of the time (payments take up upto £200 a month, which when other people are spending it going on holidays, or gettin pissed, really adds up). to be honest, as a new graduate, ya dont really need a computer or a car, but you do need to get bladdered and have a laugh..

[Nemeliza]

A. Get Job
B. Pay off credit cards,
C. Pay off overdraft
D. No longer worry about debt
E. Begin saving money
F. Treat yourself to noo car
G. Enjoy driving noo car and living debt free



My suggestion anyway.

[Allen]

I read an article the other day about how the new younger generation are okay about getting in debt as they see it as a part of life.

But we shouldn't.

Live from other people's mistakes. I used to think I could afford things, not worry about them. But it all adds up. Paying off a bank loan and your student loan could kill your social life. If not, it will cause you to loose control and you'll end up in more debt, unless of course you manage to luckily land a £30k+ job, which is highly unlikely without any working experience.

I'm very nearly debt free now, but I can't get a car, a house or afford a holiday.

[Nick F]

A. Get Job
B. Pay off credit cards,
C. Pay off overdraft
D. No longer worry about debt
E. Begin saving money
F. Treat yourself to noo car
G. Enjoy driving noo car and living debt free



My suggestion anyway.

Seems like a plan to me Cheers for your views looks like I won't get one now.

[Nemeliza]

glad i could be of assistance.

shall i PM you my consultation fee or would you prefer me to email it 2 ya instead

[Aaron]

Yeah, I'd wait until you've got a job and you know whehter you need a car and how much you can afford to pay back each month.

[Elmo]

Phew! i forgot about graduate accounts lol

I've been stressing more over the amount of debt i'm in at the moment than the exams i'm going to be sitting in the next 2 weeks!

I'm not too fussed about my student loan cos that'll get repaid straight from my salary, but i was stressing more about the prospect of only having a year to pay back my overdraft lol sooooo i'm just gunna switch to the lloyds graduate account and pay back as much as i can, even if it is only £500 a year.

Now i can start stressing about my exams lol

[tiggerai]

I'm going with the Graduate Overdraft jobbie...

£2000 first year, £1000 second year, £500 third year etc

save up the money in a higher interest account, and pay the chunk off all at once when needed.

[Moonshade]

I'd say it's a good thing, if you know how to handle it and how to structure it.

-- Moon

[rajagra]

Do you want to be in control of your own life, or be driven by your debts?
There are few things worse than being in a job you hate, but being forced to stick with it because of money worries.
Whatever job you're in will seem 1000% more enjoyable if you know you can walk out at a moments notice if they try to force too much BS on you.
You will be happier, more assertive, and more successful at work if you're a free man.
Credit is a mug's game, and it's habit forming. Don't do it. Except possibly a mortgage, but even that you should avoid if you can.
Those interest-free loans aren't done out of the goodness of their hearts. They plan to keep you as a long-term sucker, sorry customer, so they make a healthy profit from you in the long run.

[Rave]

www.moneysavingexpert.com

Don't worry about the student loans for now*. If you can, move the credit card debts over to an interest free balance transfer, then pay them off without spending anything else. The above site has plenty of articles on how to manipulate credit card offers to pay debt off quicker.

Get a car and new PC once you've got a job and saved up TBH.

*don't be tempted to lie and defer them if you get a job that's over £18k a year though, a friend of mine did that and ended up with a CCJ.