For many the overdraft represents one part of wide range of student finance options. This article considers the pros and cons of the student overdraft.

On deciding to undertake further study at University, many students will be offered a wide range of financing options from banks and other financial institutions. Products include student loans, credit cards and overdraft facilities. The student overdraft can be a useful tool however, it is also one which can lead to significant long term financial problems, if not used right.

What is an Overdraft Loan Facility

Simply put an overdraft is a form of short term loan between the bank and an account holder.

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Only half of struggling borrowers have heard of IVAs, a report from insolvency trade body R3 indicates.

R3 has estimated that around 220,000 people are currently in a formal insolvency procedure (such as bankruptcy or an IVA). A further 500,000 are in debt management plans, 574,000 are struggling, but have ‘contacted their creditors informally’. And 961,000 people are struggling with their debts but haven’t yet looked for help with them.

R3′s report, called ‘Struggling with debts without help’, looks at that fourth group.

It ‘explores the views and experiences of individuals at the very bottom of the personal debt ‘iceberg’ – those who are struggling without help’.

The report covers a lot of subjects, like why those people haven’t sought debt advice, what they’ve done about their debts, and how things like age and gender affect attitudes.

Among other things, the borrowers were asked about their awareness of the options that might be open to them. Continue reading…

For people who dream of going to college but do not have the finances to do so, there are many college loans that they can easily avail of. These loans allow students to go to pay their tuition fees through a loan and pay the expenses when they are financially able to. But sometimes, paying for college debt may be harder than expected. This is because when you are in college, tuitions fees are not the only expenses that you worry about – there are your day to day expenses, you school requirements and many more. This is the reason why most college graduates still have difficulty in making it through life, even after college.

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Filing bankruptcy is a growing trend. Several types of bankruptcy are in place to help people who are having a difficult time paying their payments.

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Filing for Bankruptcy and Non-Exempt Assets The fear amongst those filing for bankruptcy is that they will lose their home, car or non-exempt asset. How will chapter 7 or chapter 13 bankruptcy affect possessions? Continue reading…

In a somewhat surprising move, banks are considering expanding their loan offerings to include payday loans. It is surprising because companies offering this type of loan have been under scrutiny and a lot of criticism for charging exorbitant interest rates for payday and Refund Anticipation Loans (RALs).

Now it seems the local bank may begin offering small loans to consumers with terms that include as much as 120 percent interest rates. The reason they are considering these kinds of loans is because there are new Federal Reserve regulations going into effect on July 1 that limit the amount and number of overdraft fees that can be charged.

The new Federal Reserve rules are expected to cost the banks $15 billion in revenues and that is why they are looking for ways to replace that lost revenue.

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