Money Problems

LegacyUser

I don't know what to do. I'm getting myself into some pretty severe money problems. Here's the story:

In August I quit my job to complete my final year of college. I had been working in this job for a few years and had reached the point where I was depressed going in there pretty much all the time. But that's another story.

I took out a loan to survive the year- €7,000. I paid my own fees, which amounted to €1,500.

The bank manager said that I could take out the loan in installments, but I can't remember if he gave me 3,000 or 4,000. I'm absolutely petrified to find out, because if it's the case, then I have either 3,000 or 2,000 left. If I have 3,000 left, I can survive pretty easily until June, but if I have 2,000 I'm kind of screwed.

A few years ago, my parents put money in a savings account for my siblings and I after we sold our house. This will pay off the loan in full, but it won't be available until around June.

My rent is 65 a week, or 260 a month, or 1440 until June. This means that I will have 1560 euro left to myself - or 260 a month, which I've worked out to be 65 a week.

This is only if I have 3,000 left. If I have 2,000 left, then there is no chance that I can survive on 20euro a week - that would be food money and nothing else.

It's getting to the point where I have to question whether or not I want to buy a chocolate bar.

I can't go to my parents for help, because they can't afford it whatsoever. The recession has hit them pretty badly. I don't know where I can turn, where I can get help, or what I can do. This has caused me panic attacks and is distracting me from studying, as I cannot focus on anything else.

Swampy

Do you have a part time job?

Darlughda

First of all, remember what you said in your post-all debts will be paid off next year!

Secondly, find out immediately tomorrow morning with your bank regarding your loan situation. Find out exactly how much you have drawn down, I know you are dreading this, but the fear of not knowing is a lot worse, believe me, I have been in your situation.

If you have drawn down more than leaves you to survive for the rest of the year, see if you can re-negotiate terms, if not see where savings could be made.

Another option, is to seek part time work, as a cleaner, washing dishes, anything to enable you to make up extra cash.

However, just from my own experience, it might be panic that you have chosen the wrong course and are fearing your employment prospects in the future? If not, then great-things will get better.

If I am right in suggesting a parallel with my experience, think now about ways you can cut your losses.

LegacyUser

I had a part time job - it was only weekend work but I was working between 10-12 hours each day over those two days and it reached a point where I couldn't do it anymore. For the past 5 years I've had little or no life.. between college on weekdays and working weekends, so I quit my job so I could have some semblance of normality. It's looking like I'll have to go back to work again, which I don't think I'm capable of mentally.

I quit my job because I knew the workload for my course is just extreme. They keep piling on the assignments and next semester will be so much worse, as it's shorter somewhat. Now I'm beginning to wonder if I made a huge mistake.

amdublin

Op you will get through this.

Is there a counsellor in college you can talk to??
Can you go back to the bank to negotiate smaller repayments??

Op I think your parents would prefer you talk to them and ask them for some money then to continue in the state you are in now.

Could one of your siblings help you?

Milk & Honey

You need to check exactly how much you have already draw. If that 1,000 is still there you are worrying needlessly.
If not, you will have to plan. You may be able to persuade the bank to give you a 1K top up. You have only a few months to go and have shown you can manage your funds reasonably well.

cafecolour

Go check now. Worry about getting more money if you only have 2000, there's no point worrying needlessly.

Firetrap

The first thing you need to do here is find out how much money you have to play around with. If things are better than you think, then happy days. If not, you can take steps to deal with the situation. Be it trying to get another job or renegotiating terms with the bank. Burying your head in the sand isn't going to help you one bit at all.

G86

Talk to your bank. I was in a similar situation when at college, so I went to the bank and explained, and got them to increase the loan for me by a grand. It's worth a shot.

dellas1979

By far, the first things you have to do is:

1. Check what exactly you have to live on
and
2. Talk to the welfare officer at your college. They have a hardship fund in certain circumstances, and will be able to provide advice and give support on what to do.

Do not panic. But you really are working yourself up for possibly nothing i.e. find out the situation first, then make a plan. If you or your family are eligible (which you seem to suggest they have their own hardship), then approach a grand authority i.e. local country council or VEC. It will be a late application, but worth standing your ground on.

LegacyUser

OP here.

So I managed to work up the courage to go to the bank and ask how much is remaining on my loan and was told that there was 4,000 including interest. Does anyone know what they meant by including interest? I didn't think you could gain interest on one. I hope this doesn't mean that I don't have to pay back extra, as when I took out the loan I checked with the manager that if I pay back in full at the start of my repayments, I wouldn't have to pay any interest and it would just be the original amount.

tenchi-fan

Moneywoes wrote: »

OP here.

So I managed to work up the courage to go to the bank and ask how much is remaining on my loan and was told that there was 4,000 including interest. Does anyone know what they meant by including interest? I didn't think you could gain interest on one. I hope this doesn't mean that I don't have to pay back extra, as when I took out the loan I checked with the manager that if I pay back in full at the start of my repayments, I wouldn't have to pay any interest and it would just be the original amount.

Why didn't you ask the bank what they meant?

You're not going to earn interest on a loan. Perhaps they meant when you get your next installment you will need to pay back €4000 incl interest (meaning the installment is less than €4k) or maybe the installment will be €4k and you must pay back €4k + interest.

Either way, earlier on you were worrying: "This is only if I have 3,000 left. If I have 2,000 left....." so happy days, you have €4k.

Sleepy

7000 - 4000 = €3000 remaining to draw down assuming he was talking about the loan account.

If it's your current account, which the loan would have been transferred into to allow you access to it, you could indeed be getting interest on the sum as the two accounts would be treated separately.

A few other things:

1. Learn to ask questions of people. If you didn't understand what the manager was saying, you should have asked him or her to explain further. They're in more possession of the facts than anyone on Boards could possibly be.

2. The world is a hard place. Your description of the reason you had to leave your part-time job makes you sound like someone who's not prepared to work for what they want to be honest. If you can't hack two 10 hour shifts at the weekend you can certainly manage something with a couple of 9 to 5's or even two 4 hour shifts in a shop/bar somewhere. You're going to need to toughen up a bit.

LegacyUser

I am willing to work hard. Those two ten hour shifts was on top of lectures, projects and study. It was a dead end job and I realised that I just wanted to something more from a lifetime career. It was never going to be anything more than a part-time job. Once I find the career I want, I plan on going in from the bottom and working my way up. I took my final year of college to finally leave the job.

I'm not sure about that.. will go in and doublecheck tomorrow. I asked her how much of the loan is left and she wrote down, 4000. Once she handed me the slip, I asked her again is this how much is left. I was going to question it, but I was bursting for a pee after having drank about 3 litres of water today whilst studying in the library.

Kimia

Moneywoes wrote: »

OP here.

So I managed to work up the courage to go to the bank and ask how much is remaining on my loan and was told that there was 4,000 including interest. Does anyone know what they meant by including interest? I didn't think you could gain interest on one. I hope this doesn't mean that I don't have to pay back extra, as when I took out the loan I checked with the manager that if I pay back in full at the start of my repayments, I wouldn't have to pay any interest and it would just be the original amount.

Op I'm slightly confused. If you took out a loan for €7,000 and even if you haven't drawn down the entire amount, you're still not going to be paying it back until June?

Of course you're going to have to pay interest - it makes no financial sense for the bank to offer you €7,000 for no reason without getting something for themselves (interest). That's why you've been given this money until June.

I'm also confused - have you started repaying the loan yet? Usually you can put a start date for repayments but I find it really hard to believe that the bank gave you €7,000 for you to take out whenver suits you and you can pay it back in a years time, without charging you for the priviledge.

Read the small print.

boredatwork82

All colleges/university will have a hardship fund. Pled your case and I am sure they will loan you the money. In my college it was looked after by the college Chaplin. Talk to the students union or college chaplin/counsellor. the college will try everything to help you pass.

LegacyUser

Kimia wrote: »

Op I'm slightly confused. If you took out a loan for €7,000 and even if you haven't drawn down the entire amount, you're still not going to be paying it back until June?

Of course you're going to have to pay interest - it makes no financial sense for the bank to offer you €7,000 for no reason without getting something for themselves (interest). That's why you've been given this money until June.

I'm also confused - have you started repaying the loan yet? Usually you can put a start date for repayments but I find it really hard to believe that the bank gave you €7,000 for you to take out whenver suits you and you can pay it back in a years time, without charging you for the priviledge.

Read the small print.

See that is what greatly confuses me too. I was given a breakdown of the charges. It was a 5 year loan, where repayments would start from next September and if I were to pay off in monthly installments, the repayment would come to a total of €9,000+. Before I signed any forms, I asked him whether I would have to pay back just the €7,000 if I was able to pay it off before the repayments were due to begin, as I should be getting the money from that savings account in a few months, and he said yes, it would be just the €7,000. The €9,000+ would be only if I kept to the 5 year repayments in monthly sums. I got it as a student loan, if that were to make any difference.