Personal Loan Instead of Overdraft

johndog

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everlastingspirit

Makes alot more sense to do as i did when i was in ur situation. Just save £200 (or whatever your comfortable amount is) per month. You clear without needing finance and in turn get a great sense of self-satisfaction.

stephane_2

One of the question you need to ask yourself is how did you managed to be overdrawn by £1000 in the first place. What do you call leisure spending? if its money spent on clubs/bars then maybe you could try "cold turkey" for a couple of months then that would pay your overdraft. Before trying to apply for a loan maybe you should look first at what you could cut down

Dabooka

I wouldn't! I was in exactly the same situation as you a couple of years ago, and it's far cheaper and quicker to pay it off monthly by spending less! I was told the bank couldn't regularly reduce the amount of my overdraft by, say, £50 a month (presumably they don't want you to pay it off!) so I simply had a new account set up and transfered the amount in every month manually. The hard bit is not dipping back in to it, but by doing this I got it done in about 14 months. I must confess I did dip into it once or twice, but it's easily doable.

The fact you want to do this and have posted the question on here means you're already commited to doing it!

Good luck

johndog

Thanks for the fast replies everyone.

You've made me realise that I was looking for a quick and easy fix, and the only to get my overdraft down is to spend less each month.

Idiophreak

johndog wrote: »

You've made me realise that I was looking for a quick and easy fix, and the only to get my overdraft down is to spend less each month.

Definitely the way forward. You won't be charged interest and you'll develop good habits that will help you in the future.

Rafter

.... and a short term loan for that amount is gonna be expensive to arrange in any case.

Good luck with the saving - might be worth opening a second 'basic' bank account and transfer the money (net of what you want to save) there - that way you will know exactly where you stand versus your savings target.

R.