Don’t fall into the jaws of a loan shark!

A picture of someone's hands holding money
(Credit – Alexander Mills at Unsplash)

It’s not unusual that students need some extra cash, especially for the month leading up to the holiday season — but where do you find that money? Have you ever encountered someone who was willing to give you that money and would happily give more to you or any of your contacts? Before you take it, think about the possibility that they are a loan shark! 

Now what are loan sharks? You might have heard of them or seen them in movies. You might think of a seedy guy who dresses like an old gangster, but I was surprised to hear in our training from the Illegal Money Lending Team (IMLT) that they can look like anyone. They could be someone your age, an elderly neighbour or wealthy professional. In different cultures, they can be known by other names like Ah Long in Malaysia or Chulcos in Ecuador. Despite different appearances and names, they all do the same thing, and it is not only destructive for anyone taking money from them, but also illegal. 

In the UK, anyone lending money must be approved by the Financial Conduct Authority (FCA). Loan sharks are not approved and will use practices which put you at risk of exploitation and harm. Initially, they can seem very nice and look like they are just trying to help you out like a friend – this is to build trust and to get you to accept the money. There usually isn’t any paperwork, just an informal agreement and no explicit terms or conditions. They may take your personal information including passport or bank details for security, then suddenly tell you that there is a huge amount of interest or repayment. If you can’t meet their demands, they may threaten you and harass you. You might end up taking out more money to repay them or be told to carry out criminal activity. They may even threaten to take you to court for not repaying. 

This all sounds very scary, but I was relieved to read on MoneyHelper that only the loan shark is acting illegally, and although you may feel embarrassed, scared, or guilty for taking the money, it isn’t illegal to take the loan and you are seen as a victim of a crime. Therefore, it is important to report them if you suspect you are dealing with a loan shark so that you stop being harassed and to prevent further harm.  

Helpfully, I found you can check if your lender is authorised by the FCA. But even if they are authorised, anyone harassing you for repayment is committing a crime. To report someone in England, go to https://www.stoploansharks.co.uk/ or ring their hotline on 0300 555 2222. Any contact is treated confidentially, and they will investigate the lender. They can also protect you and your family during this process. Of course, if you feel you are in immediate danger, call the police on 999. 

I know for me that learning about loan sharks isn’t just about looking out for me, but also my friends and family! I hope that this blog has made you think twice about taking money for Christmas presents from that friend of a friend… 

Rebecca Lam
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.

How to make the most out of King’s Careers!

Picture showing For Hire Sign
(Credit – Clem Onojeghuo at Unsplash)

  When it comes to making the most of everything the King’s Careers service offers to its students, this blog will help demystify the process and explain how to use the Career’s service in order to maximise its benefits for you. As a final year student about to graduate- I wish I had made the most of the Careers service. However, having said that, it is important to remember that you receive support as alumni from the Careers service for up to two years. 

For example, as a student in first year, the way I came across the Careers service was via the Careers events that were hosted where we received weekly newsletters of job opportunities and events. I know sometimes the emails can seem like a lot, but make sure you go through them in order to check if anything catches your eye. Going to events, particularly the ‘Discover Careers in…’ gave me more of an idea on which industries actually interested me and what did not. Usually, in the emails and alternatively on the Instagram, there would be a link directing you to KCC, where if you scrolled down, you would be able to book your place on an event.  

The same goes for job opportunities. Usually, these would all be placed on a newsletter/ Instagram story. The link would then direct you to KCC where usually it would have a summary of what the specific job entailed (very helpful when it comes to preparing for an interview) and then on the side instructions- i.e ‘send your CV and cover letter to so and so’. These opportunities are collated by our various Careers Consultants so make sure to check them out. I wish I was more proactive in my first and second year when it came to looking at internships and trying to balance various deadlines.  

Often when we’re so focused on KCC, we forget about the King’s Careers & Employability KEATS page. I definitely did not use this as much as I should have. Here I will explain the difference between the two: while KCC is our booking platform, KEATS is our e-learning platform and they are both on different sites. Finding the KEATS page is fairly straightforward, if you keep scrolling past your modules on KEATS, you should be able to find it. When you click on the module on KEATS, you will come to a section that says Discover, Focus and Action. Understanding which phase you’re at which will help if you research will allow you to use the Careers service in a way that is helpful for you. In the tab on the left, there will be different resources depending on what kind of student you are , as well links to #MyNextSteps events which are about what to do after graduating, upcoming events/ event  recordings, industry information and sector guides, as well as LinkedIn Learning Courses which I did not know we had access to – but are no doubt highly valuable and something you can attach to your own LinkedIn account when completing a course in whatever you’re interested in.  

(Credit - Haleema Ayyub - A screenshot from the King's Careers and Employability KEATS page)
(Credit – Haleema Ayyub – A screenshot from the King’s Careers and Employability KEATS page)

I also recommend accessing King’s CareerConnect and the KEATS page via a PC/ laptop as it is easier to navigate the website from here as opposed to your phone as you’re able to see everything clearly. Furthermore, the industry information and sector guides have all the relevant information you need depending on what you’re interested in so make sure to check that out as there are multiple links to places where you can research job opportunities on alternative websites. 

Furthermore, regarding the practice interview system, this will be available on KEATS via Shortlist.Me which will provide mock online assessments and interviews. A practice interview is an hour/ 40 minute long appointment to help you prepare for an interview. You will also have the chance to practice interview answers and techniques with the help of a career consultant. The practice interview is a safe learning space that is there to support your unique situation- and the session can be changed to suit your needs so you can get the most out of your appointment.  

The CV checker is available via KCC providing content the student goes through in a linear order before having the option at the end to upload their CV and have it checked by an application advisor where they receive some feedback. This will be available from September onwards.  

If you ever have any questions regarding this whole process, always try to get in touch with the Careers service as they will do their best to help and guide you!  

Haleema Ayyub
Communications and Engagement Intern
Part of King’s Careers and Employability

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts. 

Which bank accounts are best for students?  

Photo by Steve Johnson on Unsplash

It can be hard as a student to know where to put your money – there are so many options! But don’t worry, I have put together the key types of accounts and points to consider when you open a bank account to make the process easier. 

Student current accounts 

It is always a good idea to use a student’s current account for your immediate spending money as these offer generous overdrafts for hard times and often come with benefits specifically for students. These can include rail cards (my personal favourite), free cash when joining or cashback when you spend in shops. Pick the perks that suit you the most – a bigger 0% overdraft if you tend to overspend at the end of the month or a Tastecard for those who love to eat out! 

Savings accounts 

These are good accounts if you have a reliable amount to spare each month which you don’t necessarily need to access for a while. Often, they come linked to your current account so consider this when you pick a bank. You have to put a certain amount into the account each month in return for interest. Savings accounts which let you take money out at any time will have lower interest rates than those that hold your money for a fixed term so consider your saving goals. You won’t necessarily gain a lot of money from these accounts, but they are a reliable way to make a little extra income. 

ISAs 

ISAs are great accounts for saving money for the longer term. You gain interest with no taxation (although this generally wouldn’t affect students) and have a limit of putting £20,000 per year into any ISAs you own. They also come as a fixed term or easy access, again with lower rates on the easy access accounts. I like to use different fixed-term ISAs based on when I think I need to access the money. If I won’t need to use that money for 2 years, then I maximize my interest with a 2-year fixed ISA! Some ISAs have specific terms, for example, the Lifetime ISA is used to save up for your first house or pension. Other ISAs invest in stocks and shares, which may give better rewards but could also lose money depending on the investment performance. 

Premium bonds 

Another popular place to put ‘spare’ cash is in NS&I’s premium bonds. It works by buying ‘bonds’ for £1 each which are entered into a prize draw every month. Prizes range from £25 to £1 million but the average premium bonds user could expect an interest rate of 1.4% currently. Of course, the more bonds you have the higher the chances of you winning but there is a maximum of £50,000 worth of bonds per person at any time. It is not the most reliable method of making money but offers the chance to enter a lottery every month without spending anything. I’m still hoping to get that million! 

Other current accounts 

Whilst student accounts are a good choice, you can also open other current accounts at the same time. These can be good for other reasons – interest rates, fee-free overseas spending, cashback at certain places, and better online banking. It is also worth considering any switch offers, i.e., perks you get for switching to their bank account. I picked an account which allowed me to use my card abroad while I went on my summer exchange programme and got a £100 voucher for switching to the account! 

With any bank account, consider whether it meets your needs: easy access to cash to spend day to day, good interest rates for saving up for big goals in the future or no-fee spending abroad if you are an international student or love to travel. Check whether you need to put a certain amount of money in the account each month to receive the interest or other benefits. And lastly, review your bank accounts every so often so you can choose the best deals which align with your money goals – I like to do this every year at least. 

I like to use which.com and moneysavingexpert to find the latest information on bank accounts as they summarise all the information I need about each account type into one page. I hope this can help you get started with picking the best bank accounts for you! 

Rebecca Lam
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.