Hi everyone I've been a student in the UK for the last 4 years. Asides from my student loan which has worked itself up to a lovely 5 figure debt. My bank accounts have also taken quite a hit too, so this question is kind of two-fold.

First what would be the best way of getting my bank account out of the red fast (legally of course!) and secondly what would be the best way to pay back a student loan instead of having it come out of my pay check every month. I've heard that if you invest some money into a bank account with a decent savings rate such as an ISA that you can quickly earn enouigh money to pay off a student loan easily. Has anyone got any ideas that may be helpful?

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Graham,

The fastest way to get out of the red, is to pick up a second job, or get more hours at your first one.. The High Yeild Savings account you speak of will not return as much interest as you think! I have 1k in one and i get about 1-2.00 a month in interest! Get your income up , start budgeting your incoming and outgoing and really look at where your money is going.

Negoitate rates, settle some debt that can be settled. And find other income streams. So much in this industry is focused on how to not lose money instead of HOW to make money. Some debt is great if it opens up income streams for you. Most debt though is bad debt used to find items that are not needed. When you learn to invest in yourself to get ahead and not invest in possessions is when you learn how to get ahead in life. All the best!

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Savings accounts do not do as much as people think. The interest rates are always extremely low.

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New graduate with an emphasis in debt counseling.

IMO, instead of putting money in savings account, better to go for fixed deposit (if dont want to take risks) or to invest in mutual funds. (Risk involved in this case).

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Personal Finance Advice

Yeah but she probably can't afford to invest in mutual funds because she is paying her debt with her paychecks, she doesnt have any savings. You should work somthing out with the bank you borrowed from. get a night job like working as a bartender or somthing.

Have at least $500 available in the bank/savings account should you need emergency funds. Start paying off the debt in a scheduled and focued way. Look into getting another part time job

I agree, get a second job and get on a tight budget. Try to live on much less than you earn at this time and work on your debt first. You have plenty of time to invest after your debts are gone. But get real focused on being debt free, like a quest.

Spend less than you earn and every time you make a purchase, ask if you really need it. I still spend money on things I shouldn't but I don't buy coffee by the cup anymore, make my lunch, eat more beans and rice and have really made an effort to appreciate everything I have and not what I want.

maat55 is right - it is a quest. I don't use a budget but I do have a spreadsheet of credit card debt and my payments that I use to keep me focused.

Whatever you decide to do - I hope it works!

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I agree with them that maybe you should get a part-time job. It may really help you earn extra money. Budgetting is also essential especially if you are living on your own.

You should also ask for other options about the loan from the bank or from the offices in school.

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