When I go back to University in September, after my placement year, I’ll be feeling a bit lost without the money I have been earning. It’ll be back to the student loan, racking up more debt that will take what seems like a lifetime to pay off. I’ll be surviving off Tesco’s own pot noodle to scrape together cash for a night out. I mean pay the rent.
In first year, I ended up spending my first student loan installment fairly quickly. This was the first time I had a huge chunk of money I had to decide how to manage. Before moving to Sheffield, I had been living with my parents so I didn’t have any rent or bills. Living away from home was such a big change for me. I ended up asking the bank to extend my overdraft so I could survive until my next installment. I also took out a credit card account as a backup, although I tend to avoid that because of interest rates.
When I do finally graduate in 2014, I have got fair few years to look forward to paying off my loan. I’ll not just be paying it off, I will be paying off interest incurred too.
This is the reason less people are going into further education it can potentially make you bankrupt. With the average age of young people leaving home now being around 30, people feel as though they should just start working from 16 so they can move out and afford a place of their own quicker. However, with unemployment rates rising from the recession and everyone fighting for a few jobs it is essential for us to get a good qualification and experience to make sure we stand out among the rest. Therefore, the younger generation are stuck in a confusing situation and do not know what to do. We could be falling over hurdles and ending up with a load of debt and no job.
If you are an individual or struggling as a sole trader Wilson Field may be able to help you. We can offer advice and suggest the right direction for you, whether this may be through an IVA or bankruptcy. Give us a call on 0800 458 3320.
By Becky Cleary