Should I use my savings to pay off overdraft?

ruby_eskimo

Title says it all really. Overspent a lot this month and racked up my overdraft quite a bit (to almost £800). Now I have £365 in savings allocated for christmas spending but...I'm considering paying off some of my overdraft with that. If I do, when I get paid on wednesday, I will actually be about £100 in credit after taking out the various necessities where as usually I would be back in my OD again the very same day. I can always do a lot more overtime and get the cash back before christmas.

So do I do this or do I just keep the money and worry about stuff that hasn't come out of my account yet?

smsfrancis

Do you pay interest on the overdraft or other charges? And what is the savings rate that you have?

squack

pay it off :money:

mummum2

I would say pay it off, especially if as you say you can have your Xmas saving replaced.

GSXRCarlos

smsfrancis wrote: »

Do you pay interest on the overdraft or other charges? And what is the savings rate that you have?

i second this comment, normally i'd say pay it off, but if it's an interest free overdraft, then keep things as they are, until payday, but you'll never get out of your overdraft this way

ruby_eskimo

Thanks guys and girls, I transferred the money over last night because I can always transfer it back again at pay day. And it's an interest free OD (my graduate one) but the savings account has a pitiful rate attached to it (it just holds money from time to time, I have an ISA for everything else at the mo). Hopefully I can start to pay it off now and keep it off!