Expert Response
The student.

Attending university is an exciting time and it's all too easy to rack up debt and not think about how to pay it back. Tim doesn't have a student loan at the moment but recognises that it's a possibility in the future as he can't rely on his parents to see him through. He knows that he needs help and is willing to seek advice from his bank when the time is right.

Tim is right to be thinking of how to manage any debt he builds up whilst at university. This is a sensible and pragmatic approach as taking on a debt always means planning for its repayment.

It would be a good idea for Tim to draw up a planned budget to manage his spending. This should include a list of his outgoings for the year such as rent, tuition fees, household bills, and include additional outgoings such as food, clothes, and socialising. He should then look at the sources of income available to him including any money from parents, student grants (if he is eligible), and any part time work Tim is undertaking. Tim could then assess the potential gaps he has and how best these could be funded by sources such as a student loan.

Tim has an overdraft that he manages every month and a credit card for emergencies. He's using them both sensibly. Having a budget in place to manage your finances on a regular basis will stand anyone studying full time in good stead. Especially when dealing with lump sums that have to cover all manner of bills over long periods.