Question about O/D usage

georgiasmum

I have a competitive, small O/D (£500) on my current account and use it regularly! My rationale for this is that I'm currently paying off some much more expensive debt and would rather use the O/D temporarily. I aim to finish this by Dec and clear and half the O/D balance. Is using an overdraft in this way potentially a bad thing or should I be ok? I've been doing it since March.

Broken_hearted

I think it's ok as you are paying the higher debt off first, just remember not to go over it or you will get charged.

Annie_Fanny

Wot's the apr on this overdraft? Would you be able to apply for an Alliance & Leicester account - they offer a 0% overdraft for a year, if you tick all there boxes that is.....

Have you heard of the snowball calculator? This will help you prioritise your debts (just ignore all the adverts!)

http://www.whatsthecost.co.uk/snowball.aspx

Annie

tesuhoha

The only thing I would say is that having an overdraft makes it difficult to see how much money you have actually got. Also, after a while the overdraft ceases to be another debt and you tend to think of it as money you have available to spend. I know this because I've been doing the same thing for years.

georgiasmum

Thanks for the tips. I am careful not to go over it!!