Debt and money in general is a funny thing. Most people feel incredibly embarrassed about their financial affairs, even when they are solvent. Admitting that you are in debt to a partner of loved one can be particularly traumatic. It often makes the individual in debt feel that they have somehow failed, even when their partner may be part of the reason that they are in debt.
Debt inevitably causes stress. When money is tight, it is not possible to fall back on treats to deal with the annoyances felt on a day to day basis. One of the best ways to deal with this stress is through completely honest and open communication. Sit down and work out a complete budget with all income and outgoings listed. Resist the temptation to think that your partners treats aren’t important, any spare cash should be allocated fairly and with mutual consent or the resentment will soon build up!
Now is not the time to apportion blame, communicate openly and you will soon be debt (or at least stress) free.
I did not get a student loan when I went to college as the grant system was in place. Did I appreciate it – no! I didn’t know any different – then, it was just what happened. You were given a grant and went to college. Don’t be misled though it was never enough to live on and we all had part time jobs in term time and scrambled for the best summer jobs. I still came out with a hefty overdraft even then.
Now I’m trying to save for when my daughter goes to college, hopefully in few years. I dread the thought of her having a debt hanging over her even before she’s really started her working life. She’ll get part time work, summer jobs, I’ll pay whatever I can and throw my savings at the debt.
Student loans are a fact of life and cannot be ignored. In that respect negotiate the best interest and repayment plan you can. Throw money at your living expenses debts while you can by having part time jobs – great experience for your later working life. Then take a deep breath and when you start full time work get out of debt as fast as you can before other financial constraints take over.
When people are short of money, often their first thought is to ask their friends for a quick cash loan. Applying for a bank loan can sometimes be a stressful and complicated process, but a good friend is always there for some monetary comfort.
The question is, is it really worth losing a good friend because of money? Sure, they probably won’t charge any interest on the money, but what if you’re unable to pay them back? Then you’ve lost their trust, their friendship and their cash. Debt is also a huge cause of stress, no matter who you owe, and debt can affect your health.
On the other hand, you can’t really have the same kind of friendship with a bank. So does that mean there’s less to lose? Not really. Whilst you may be able to get a fantastic amount of money up front, most of the time you’ll end up paying back much more in the long run. If you do get into trouble with paying back your loan, be sure to get debt advice.
It all depends on how much you want to borrow, and what kind of timescale you’ll be able to pay it back over. If you’re confident that you’ll be able to pay the money back in its entirety, it might be better asking a close friend, or arranging a short term loan, as long as the amount isn’t too high. Then again, if you need a large amount of money for a legitimate purpose then a bank loan could be the ideal choice.