Student debt > Seven steps to student debt freedom

Step 1. Anyway the most important thing to do is figure out just how much of a budget you are on.

I personally worked out my monies as follows:

· Total up all your income including student loans, wages and any other money you have coming in be it from selling your behind or whatever.

· Take away your accommodation costs for the year.

· Estimate your monthly bills, remembering it is better to over estimate than under estimate, multiply this by the number of months you will be paying bills and then take away this total from your total income less accommodation.

· You now have your expenditure for the year. Divide this by the number of weeks you will be requiring the money to last and you now have your weekly expenditure.

Step 2. To simplify:

Income for year - accomm. - (bill cost per month * # of months away) = Cost for year

Cost for year / (number of weeks away) = Expenditure per week

This weekly expenditure will have to cover you for everything that is food, drink, nights out, clothes, music and anything else you may care for.

I found the best way to make sure I didn’t overspend was to take out my weekly allowance at the beginning of the week in cash and then make sure I did not return to the cash machine until the beginning of the following week.

You must try to avoid taking out more one week and promising yourself you will take out less the next as this almost never happens and you end up leaving yourself little money for when you need it most (usually at the end of the year when everyone wants to go out).

Step 3. Student Overdrafts

Having an interest free overdraft can be very useful at times but remember banks will only give you an interest free overdraft if they can make their money in the end. The way they do this with students is by adding a large amount of interest once your course has finished. So if you have used up all of you overdraft come the end of your course you will find yourself having to pay interest on it.

My advice is only to use your overdraft when absolutely necessary, certainly do not see it is an additional loan to spend on whatever you feel like.

Step 4. Hardship loans

Most UK universities offer hardship loans for students who genuinely need them. Sometimes, depending on circumstances, this can be given as a grant, which you will not be required to give back. Universities are however very strict about application for these and you will have to prove that you are genuinely in need of the money. See your university reception for more information about this.

Step 5. Additional Income

Many students decide to take on part time jobs during their degrees as a means of additional income. This is not always recommended as it can severely interfere with both your studies and your social life, especially if you have bar work. My personal recommendation is to work your ass off over the summer eliminating the need to work during term time. Most students will have three months off over the summer which gives a large earning potential as long as you are sensible with your money. However if you have a particularly large appetite for the nicer things in life, such as underwear or food that doesn’t come with health warnings, then student unions offer a fine selection of jobs.

Working for the student union, weather it be cleaning bogs or serving drinks, can provide a non stressful, sociable and reasonably well paid job. Also you will get free entry and free drinks when you’re out on the pull if you befriend other workers.

Step 6. Things to take into account

Below is a list of things that most students will have to spend their hard earned student loans on:

· Accommodation, that thing that you live, sleep and wank in, it don’t come for free you know.

· Food (or beer) apart from Cletus and Myella the local squirrel hunting yokels most people will have to go and buy food.

· Travel, even if you live within walking distance of your place of study the chances are you will be using public transportation during the week at some point so take this into account. If you have a car that doesn’t run on air then that again is going to be costing beans.

· Washing materials, soap, toothpaste, Ajax powder the costs of staying pullable can be extreme. You also need to remember than mummy isn’t doing the washing anymore so Fairy liquid and Bold 2 in 1 will become an essential part of your weekly shop, or monthly depending on how much you like flies.

Step 7. In addition to all of the above which will involve regular out goings there are things that you will be buying irregularly but can be quite expensive and you should think ahead about them and whether you really need them.

· Clothes, now there are lost of discrepancies in the law about the wearing of clothes but most of you will choose not to walk round au naturel so just remember to leave enough money aside to buy new boxers every now and then

· Music, Music is an essential part of young culture and its often very hard to resist the temptation to buy a new CD or a new Hi-Fi or whatever else you need.

· Unexpected extras, this is what will mess most peoples finances about. Examples of such things from my own experience are sports equipment, birthdays, fines, trips, books etc…

My final piece of advice would be to always leave a little extra in the bank just in case because 99% of students will go over their budget. Also don’t worry too much about your money, university is all about having a good time.