Advice needed - Overdraft or Loan?

Blondie_Bob

Hi,

I'm having to spen £1500 on home improvments (essential). I have a £3000 overdraft of which I have only ever used £500. I live within my means - my overdraft has only been used on one occassion (I have no idea why the bank gave the damn thing in the first place!). I spend what I earn but don't have any other loans or credit cards. As I would be able to repay the £1500 in a short period of time, I was wondering if it is better to get a loan or just utilise my overdraft??

Any advice would be gratefully received.

Many Thanks.

simongregson

The overdraft is more flexible if you want to pay it off quickly. Just bear in mind that the bank can recall it on demand if they choose, but this is unlikely as long as you are still paying income into your account and it is reducing.

You could get a 0% credit card, either MBNA/virgin and transfer money to your bank account if paying cash, or 0% purchases if your tradesmen accept cards.