Overseas (English) Student Loan Payback Methods? (Whilst Living Here!)

nickyd84 on 03/03/2015 - 10:03

Hi All,

Situation:
I have student debt back in the UK that has followed me here (approx 8,000 GBP.
It is approx 80GBP a month, so with the exchange rate it is really killing me now.

Solution?
I am looking for suggestions of how to pay back without losing out - basically with the collapse of the AUD I have been set back months! My debt was around $15,000 AUD, and now 2 years later with the exchange rate it is actually probably HIGHER than it was before my repayments!!

Maybe a bank loan from here and pay it off in full? At least I won't be at the mercy of the exchange rate.

Thank you!

Financial

Comments

  • mrmarkau67 on 03/03/2015 - 10:28

    If you move the loan here, will you be paying a much higher interest rate?

  • akpv on 03/03/2015 - 10:32
    +1

    What do you mean when you say it is 80 quid a month? Is that the interest? The amount you are repaying?

    What is your interest rate?
    How much are you paying back per month currently?
    What method are you sending the money back?

    Unless you can get a personal loan at a lower interest rate I wouldn't worry about exchange rates, just pay the thing off quicker and use an efficient method for transferring the cash I'd recommend currencyfair.com

    If you are only paying 80 pounds a month it's going to take you over 10 years to pay back! crazy talk!

  • nickyd84 on 03/03/2015 - 14:03

    Sorry, i should have included more information. Thanks for the replies already guys.

    Current interest rate is only 1.5%, which is great. Although mt issue is the currency exchange, and if it continues to take a dive then my repayments pretty much go backwards! Pretty frustrating.

    I am currently using my commbank mastercard for payment with a DD, I don't get charged an overseas transaction fee, just monthly transactions with whatever the exchange rate is at the time.

    I've worked it out that i have a good 9 years left at this pace…excellent!!

    I'll check out this currentyfair.com. I've also just got a new job so will offer bigger chunks - maybe i can get rid of it within 6-8 years ha.

    • the-mal on 03/03/2015 - 16:25

      Whatever you do don't get a bank loan to pay off a 1.5% loan. At 1.5% your best off holding onto your money in a high interest savings account and paying off the minimum you can.

      • nickyd84 on 03/03/2015 - 16:39

        Ok, I am forced in to monthly repayments though so do have to keep to a minimum. I could probably increase my contribution - I am tempted to pay off a chunk from savings but hesitant with this exchange rate…I just need to do it when the rate gets better i guess.

        • the-mal on 03/03/2015 - 16:53

          Why pay off a chunk? At 1.5% your money will grow more if you keep it. Are there incentives for paying off lumps?

        • nickyd84 on 03/03/2015 - 20:49

          @the-mal:

          I guess to get rid of it in under 9 years, but also if the exchange rate gets worse then it will be an uphill battle again..

Login or Join to leave a comment
Login Join