Normally, when people are out of money and can't afford an apartment, they either purchase a trailer or stay with their friends or seek financial help from them. An Aberystwyth University student from Totland has found a new way of dealing with the financial crisis.

After ending a relationship with his girlfriend, Joe Pearce, 23, couldn't afford to pay $650 rent, all by himself. So, instead of approaching his friends, he decided to live on water and purchased a yacht for $1,260, which is equal to two months of rent.

Pearce, a physical geography student bought the 42-year-old yacht, 'Golden Cloud' online from the owner in Porthmadog, North Wales.

While studying for masters at the university, he lived on the 24ft/7m Falmouth Gypsy class boat. He docked the yacht at Ynyslas boatyard for 14 months, which cost $1.5 per day. He would cycle to and fro from university to save money.

Pearce described his stay at the yacht as 'living in a wooden tent.' The yacht was built in Penryn, Cornwall featuring a glass fibre hull with a plywood coach roof.

'When I was studying for my masters I realised I couldn't afford to keep living in a flat. I was sharing a flat with my girlfriend, and we would split the £100-a-week rent between us. But when we broke up I would have had to pay around 400 pounds a month by myself. So I then came up with a crazy idea to buy a boat to live on,' Pearce said.

'My friends were excited and I think they were expecting a glamorous yacht - but they were shocked when they saw it. It had seen better days and I thought of it as luxury camping, or that I was living in a wooden tent!'

Pearce who was not troubled by the credibility of engine found it difficult to move from one cabin to the other due to low ceilings. The boats' maximum height was 5ft while Pearce was almost 6ft.

'At times it became cramped and the low ceiling wasn't ideal as I had to crouch down otherwise I would have hit my head.'

Pearce who graduated last December recently sailed to his home in Totland, Isle of Wight travelling a distance of 500-miles from North Wales.

'It was so much fun living on the boat - I saved a lot of money and I've still it got it and use it to go fishing around the island. It was a fantastic experience and I wouldn't change anything about it. The boat has got so much character and it's officially my boat.'