It can be really hard to get by each week as a student on the limited funds we have. Since our finances are so stretched already, saving money can be a real challenge and can take a very long time. There is an alternative to waiting another year before affording to buy that new car or trip to Thailand, we can borrow the money now and pay it back later.
There is many different way to borrow money to buy things. Make sure you check the interest rate of any loan before signing for it, don’t pay more than you need too. Also some loans will have fees to set up, while others will not.
Here are five common things students get a loan for in Australia
- Buy a used Car
It’s better to buy a used car rather than a new one since they hold their value longer. However it can be harder to get a loan on the used car than the new one. Many financial institutions offer “Car loans” with reasonable rates, although you could get a personal loan to buy the car.
- Go on a Holiday
Stressed from all the hard work during the semester? Might be time to take a break and booking a holiday. It can be hard to get a loan to go on a holiday, often the bank might suggested you get a credit card instead which might mean higher interest.
It’s stressful enough moving houses. Trying to save money and do it cheap can sometimes backfire and create problems. Using a removalist can save you a lot of time and anger when things go wrong…unfortunately they cost money. There is also a lot of other expenses that pop up when you move such as purchasing new furniture, so it might be a good idea to take out a loan when you plan on moving house.
- Purchase a Computer
A personal laptop or desktop is probably one of your most important tools as a student, so making sure you have a good computer that’s fast and starts every time can be really important. Just be cautious not to not go overboard and get the latest and greatest games machine when all you need to run is Microsoft word.
- Consolidate Debts
Sometimes people take out far more debt than they can handle at rates they can’t afford. In times like these it can be a good idea to consolidate all the loans into a single more affordable one.