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Loz
Joined: 05 Dec 2006
Posts: 4
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 Posted: Tue Dec 05, 2006 10:14 am Post subject: Student Loan payment |
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Bonjour!
I finished uni a few years ago, but whilst there and after I took out various different store cards and credit Cards, the interest and charges are really building up now!
I have an OK job and am earning over the 15k required to start paying back my loan. However because the interest rates on the credit ive taken out is so high i would like to pay off my store cards and credit cards asap and stop the student loan money being taken out of my wage packet. THEN once my finances are sorted pay my student loan off.
Ive tried to contact the student loan company but have failed to get through to anyone with any sense!arrgh!
Do you know if this would be possible?
merci |
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Andrew
ClearDebt Advisor
Joined: 04 Dec 2006
Posts: 49
Location: Manchester
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| Posted: Tue Dec 05, 2006 10:49 am Post subject: Student Loan Company |
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| Quote: | Ive tried to contact the student loan company but have failed to get through to anyone with any sense!arrgh!
Do you know if this would be possible? |
Generally it is! The SLC are pretty good and I'm surprised you've not had any luck: For info, this link will help you (or other readers) understand how your student loan will be repaid. However, unless you earn vast amounts, the impact of your student loan on your overall finances is likely to be low and manageable and the current interest rate makes it probably the cheapest credit you've got.
You are absolutely right that your priority must be the debts you have on which you pay the most. You may be able to make big inroads into your debt by using a technique known as snowballing. Pay the minimun on all your debts except the most expensive one - and pay back as much as possible on that single debt. Once you've dealt with that one, move on to the next debt and so on. Your debts can disappear months earlier than they would otherwise.
You could try to consolidate all your outstandings into one debt at a lower interest rate. This might be a worthwhile option if you can still obtain credit. However, only do it if you are absolutely sure you won't use new credit for anything other than repaying the debt you have now.
Once you are straight you can use the excess cash you will then have to repay your student loan more quickly if you wish. Don't get another loan to do this though - it's likely to cost you more than your student loan.
Hope this helps,
Andrew |
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Loz
Joined: 05 Dec 2006
Posts: 4
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| Posted: Tue Dec 05, 2006 12:18 pm Post subject: |
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Thanx for the link, ive been trying to call the wrong number and just got an answer phone service or someone in the wrong dept. I needed to call the Collections helpline. Ive called them and its seems like i will be able to suspend payment for a while.
I am only just over the threshold to pay the student loan back, so the the extra money from not paying off it off should help quite a bit.
I dont think i want the hassle of gettin another loan, will look into how much i could save though.
I think trying the snowballing would be my best bet, will try and make some kind of spreadsheet to set it all out because i have loads of small debts, i forget i even have some! 
Thanks |
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pixie_dust
Joined: 27 Aug 2008
Posts: 1
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| Posted: Wed Aug 27, 2008 1:30 pm Post subject: Thanks for the link! |
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Thanks very much for the link i'm a third year student and had never looked at the repayments in depth. Bit scary that the interest rate will probably keep going up but at least the payments will be very manageable  thanks again! |
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