Is it Worth Getting a Storecard?

A store card is issued by many larger stores and they offer the shoppers credit. They are similar to a credit card, but you can only use the card in that particular store or other stores that they own. This means that you are restricted as to where you can use them. However, they do have some advantages over normal credit cards.

A store card allows you to have credit. This means that when you shop, you will not have to pay for the goods immediately. The balance is put on the card and then after 4-6 weeks you will receive a bill. You can usually to choose to pay off a minimum balance, which would include an interest charge or to pay off the full balance, which if you always pay off in full, includes no charges. In that sense it works the same way as a credit card. You will only be able to use it in the shop that issued it or in shops that they own though. Therefore it is more restrictive than a credit card in that sense.

Often a store card will have some advantage to those that have them. It could be that you get money off coupons, access to special events, collect points or get cash back all in connection with that particular store. There could be all sorts of interesting things that are only available to store card holders but this will differ depending on the specific store that you have the card with. Some will obviously have more than others. This means that if you shop in that store a lot, then it can be well worth having one and enjoying those benefits. Unfortunately, it is hard to find out what some of the benefits will be until you actually take out the card and so you may find you have to go with it and see if you find that it was worthwhile. Sometimes they will offer a discount on your first purchase with the card, which can be well worth taking advantage of if you have bought a lot of things on it. However, it is worth being careful that you are not buying more than necessary just because it seems to be a good offer. It is only a good offer if you would have bought the items anyway.

One thing to be careful of is interest on store cards. If you do not pay back the full outstanding balance each month, interest will be added. This works in the same way as a credit card in a similar way to a payday loan but it is normally more expensive. It is therefore best to pay off the full balance each month and you should be able to get all of the benefits of the card without excessively paying for them. If you think that you will not be able to pay off the balance, then it is best not to get one at all or to find one which has the lowest possible interest rate on it. You should be able to set up a direct debit each month to repay the full outstanding balance, so it is easy to do and you will not forget, but you will have to make sure that you have enough money to cover the payment.

So, getting a store card can be worthwhile, but only if you take full advantage of it. Use all of the good offers that you can but make sure that you do not buy more than you need. Make sure that you pay all of the balance off each month and therefore you will not have to pay any interest on it and you will gain a lot from it. If you do need a card where you do not pay it all off in full then it is wise to compare interest rates and find the one that will be the cheapest. This is because the high cost of the interest will be more than any benefits that you get from the card. Do be cautious though and if you think that you are the type of person that could easily get into debt, then it is probably worth avoiding using a card at all.

It is certainly worth having a think before taking out a store card. They can often be something which a shop will try to quickly sell you at the till and you are not left time to think about it properly. Do take time though, ignore the queue behind you and think whether you really want one and if this is the right time for you to sign up. Do not feel pressured into it, make sure that you are doing the right thing for you. If you sign up and change your mind, you can always cut it up and throw it away and not use it again afterwards.

Is a Student Loan worth getting?

A student loan is something which you can borrow to cover the costs of higher education plus living expenses while you are studying. They are available in many countries and can add up to a lot of money. They work differently in different countries but will often be treated differently to other debt with regards to your credit record.
You will not need to prove you can repay the loan in the same way as with other sorts of lending. You may not need to repay until you are earning over a certain amount of money and it is very unlikely that any repayments would be necessary until the course was completed. However, course fees and living expenses are expensive and it is possible to leave with a huge amount of debt owing. It can be hard to know whether it is worthwhile.

Some people feel that studying is worthwhile whatever the cost. They feel that higher education gives them and experience that does not compare to anything else and therefore is worth any cost. Not everyone agrees with this though and do not think that having the debts is worthwhile. It is therefore worth some considerable thought.

If the education that you get will guarantee that you do a job that will be well paid and you will have plenty of money to live off and enough to easily manage the loan repayments, then it could be well worth it. But many courses do not lead directly to a job. Some require further study afterwards, some are in fields where there are very few jobs, some are purely academic and so applying the knowledge to a job is difficult. It is therefore worth planning what job you intend to get after the course to start with. Think about whether it would be worth doing some work experience first so that you can find out if you like the job before you pay all the money for the course. Also look into whether there is a different route to getting into the job. You may be able to work up through the company in the same time that it takes to study, you may be able to get an apprenticeship which pays for the course or there may be other alternatives.

The terms of a student loan are really important. You need to make sure that you understand exactly what you are taking on and what the expectations will be on you. In the UK, for example, the government have changed the terms of the loans and so it is worth noting that even though you sign up under certain circumstances those terms may change. It is also worth noting that in the UK, the student loan can be backed up by a grant if students come from a family of low earners. If they do not qualify for a grant, then parents or students may need to make up that extra themselves.

For some people they decide that working and saving could be a better option. They could do a few years of work while living at home and save some money and then work part time through university and pay that way. This could mean that there will be no debt or a reduced amount of debt and the work experience will be useful as well, particularly in getting a job when you finish the course.

If you do not like the idea of having a debt hanging over you, then a student loan may not be the answer for you. For some people the idea that they owe money can play on their mind a lot and make them feel unhappy, which is not good. A loan of this size will take a long time to pay back and therefore that is a lot of unhappiness to have to bear. However, if you want to work towards a career that needs further education then you will have no choice but to study and this will cost money and the loan could be the only option. Certain careers have no way in apart for getting a degree or further qualification. Therefore you will have to go to university if you want to get this sort of job.

There are probably a few simple questions to ask to help you to decide. Firstly, think about whether you can afford to pay without a loan or whether you can get a job for a few years and save up. Secondly consider whether the course you want to do is necessary for the career that you want to do. If you are not sure what you want to do then it is best to work for a while and only start studying when you know what you will use the qualifications for. If you are doing the course because you think it is a good experience, then it could be better to move out of home, get a job in a university town and hang out with students but not actually go to the classes! You will save a lot of money that way!

When to use your Overdraft

Most people that have a current account also have an overdraft facility. This could be an arranged overdraft where they can borrow money up to a certain amount or they may be able to draw more money out than they have in the account using an unauthorised overdraft. Some people use these facilities on a monthly basis and others use them less often, with some not ever using it.

The useful thing about an overdraft is that it will always be there so if you run out of money you can get a bit extra. It is paid off quickly as when money comes into the account, it pays off the overdraft immediately. This means that you do not even have to worry about a transfer or anything like that as the money will go straight into paying it off. Often an overdraft is automatically set up by the bank as well, which means that you can use it easily without having to ask permission. This means that you get instant access to the money and it can be very convenient.

However, an overdraft can be a really expensive way to borrow money. The rate varies between lenders but it is often a lot higher than other ways to borrow money, so it is worth being careful and checking. If you use an authorised overdraft then you will have a certain rate, but if you borrow more money than the bank has agreed to let you have you will be having an unauthorised overdraft. These can be extremely expensive. Not only will there be interest charged but there will be fees as well and these can add up really quickly. It is worth making sure that you are aware of what you will be charged, both for the authorised and the unauthorised overdraft. An unauthorised overdraft can have a daily fee.

An overdraft should really be used for times when you need a little bit of extra money that you will be able to repay soon. A credit card is a better way to borrow if you pay back the money when it is due, as you will not be charged interest. However, if you do not have a credit card then this may be the only option for you to borrow money. If you think that you will need to borrow more than you have authorised then try to negotiate with the bank to get a bigger overdraft as this could save you a significant amount of money in fees and charges.

An overdraft will charge you daily. This means that you do not want to use it a long time before you are going to pay it off as the cost will be really high. Therefore the best time to use it would be just before you are getting some money in. It can help you to get through to your next pay day, but it is expensive even for a few days and so should be used with caution. Use for emergencies only is probably the best way to approach them. They can be convenient but because they are so expensive, it is better to only use them when you really need to.

If an overdraft is something that you think you will use a lot, then it can be worth comparing current accounts to see whether you will be better off switching to a different one. There will be big differences in the interest charged and the fees between different banks and building societies and so you may be able to benefit a lot by choosing an alternative one. Obviously those fees can change from time to time and so it is worth comparing on a regular basis to make sure that you have got the best deal.

So if you are going to use an overdraft only use it for emergencies. It is expensive so shop around and try to find an account with one that is cheap and use it for the least amount of days possible. Try to find alternatives if you can so that you can save money. If you can use a credit card, for example, it could be a cheaper alternative. You might be able to use savings that you have or just wait a few days until you get paid. It is easy to get overdrawn without noticing at times and this can be costly, particularly if you are buying things that you could have waited for. Therefore , it is always wise to keep an eye on what your current account balance is so that you can ensure that you only go overdrawn if you intend to, rather than by mistake. It is usually possible to budget or wait when it comes to spending and so if you are more aware of what money you have available, then you will be able to act accordingly.