Friday, September 4, 2009
Category:
Personal Finance Tips
Confused.com recently offered some words of financial advice for those students who are leaving home.
When is comes to taking cars away to university campus, students should think about the type of insurance they are going for. Lots tend to go for third party believing it to be cheaper, this is not always the case though as a Sheffield University student aged 19 found. Insuring a Ford Fiesta fully comprehensively would cost £1238 wheras Third Party only comes in at £1861.
When moving home, students should be aware that they need to contact their insurance provider and let them know. Changing address can affect the insurance premium. Drivers should avoid fronting, whereby parents put their children on their insurance policy as a named driver, but they are actually the main driver. This is done to gain cheaper premiums but is fraud and can make any claim invalid.
According to Confused.com, students are more likely to be burgled, and so it is important to ensure they have the right insurance cover. Students should not assume that they can be covered on their parents’ policy – often these don’t have the same level of cover as an individual policy.
When it comes to the bills, often students don’t switch from the previous tenants’ supplier. Meters should be read as quickly as possible, and the previous occupant’s energy supplier should be investigated. If they don’t offer the best deal then a better tarrif or new supplier should be sought. Confused.com also recommend making the effort to read metres each and every time a bill is received so as to be sure that bills are based on real usage rather than estimates.
Budgeting is advised – creating plans which can be adhered to will help lessen mounting debt. It might seem like a large sum when student loans come through, but these must last an entire term. Students should steer clear of credit and store cards as these are a costly form of borrowing.
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Homeowners who graduated with several debts in the form of student loans, credit and store cards, and who are still repaying them now, could consider consolidating their debts with a secured loan. A secured loan is one of many options to consolidate debt. Rather than having several repayments to make each month, a secured loan for debt
consolidation will result in just one, potentially lower repayment. If opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
