loan to cover overdraft - logical?

danielleindebt

well my oh has applied for a loan to cover my overdraft! i will be paying it but it will be in his name!

i know getting loans to pay of debt is generally bad but in my case i think it will be better!

i am currently paying my 6000 overdraft 100 a month! and gettin charged 85 - 90 a month in interest!

so he has applied for a loan over 6 1/2 years at 100.00 a month @ 7.9% interest

my thinking was overdraft would have took me 252 months and i would have paid 17k in intrest alone (according to snowball calc)

so a loan over 6 1/2 years will cost me an additional 1.5 k but thats way beter than the 17k in interest i'd be paying in the long run on the overdraft!

any opinions?

ZootHornRollo

seems like a very easy decision if your maths are correct.

its a no brainer.

Seaxwyn

I think you've done the right thing Danielle - so long as you don't run up the overdraft again. That's a mistake many of us on here have made, myself included.

danielleindebt

not this time! once it is paid off i will be cancelling it totally! i dont want an overdraft ever again! its to easy to think its your money when it isnt

ZootHornRollo

i'm trying ot pay off an overdraft too. but i'm trying to do it through 0% credit cards.

GeorgeUK

I would have gone with the 0% CC option before trying for a loan. For amounts like this though he may not get the advertised 7.9% as tehse are usually FROM 7.9% and the smaller the amount you request, the higher the interest.

danielleindebt

good point george. my only concern is that 0% cc would we get an amount of 6k on a cc tho? i'll let u know the response tomorrow when they will reply to the on line application he made.