Outstanding Loan, Or Overdraft??

Dicky2K

Afternoon all.
If any of you know me, you'll know im sh*te with money sense...
So advice from anyone with a brain please

I have a loan, with an outstanding amount of £2762..
I took the loan out in September for £5000 to buy a car.. I have been paying lumps of £1000 off ontop of the couple of monthly payments.

Thing is, When i spoke to the bank about it, they said that there was only 0.1% or somthing in the difference of the rate between the loan, and my overdraft..

Thing is, im rubbish at saving so when i've been paying the £1000 off, i've been going into my overdraft to do it, because i save a lot better to get out of the overdraft, than i am at actually getting £1000 in credit, then paying it.

Because i have an overdraft limit of £4600 i was now thinking of wiping the loan out, and sitting in my overdraft for a few months, but someone has told me its lethal to your credit history or somthing...?
Im not sure, what would you clever people suggest?
Regards

CLAPTON

what is the APR of the loan?
what is the APR of the OD

OD are repayable on demand so are a very high risk borrowing strategy

generally speaking most potential lenders will see a regularly used OD as a sign of financial mis-management and an inability to handle money well.

Dicky2K

I can't remember the exact rates on either im afraid, But i remember asking about the %'s when i phoned to pay a lump off.. and i think the OD was somthing like 0.1 or 0.01 % cheaper..

but my problem is soon as i see a bit of cash in my bank, i have to spend it ... wheras when im in my OD i like to get out of it a.s.a.p so i stop spending and dig out of it..

CLAPTON

not sure I can help with that problem

maybe give your debit card to your mum/OH and ask them to just give you pocket money each week?

vaporate

CLAPTON wrote: »

what is the APR of the loan?
what is the APR of the OD

OD are repayable on demand so are a very high risk borrowing strategy

generally speaking most potential lenders will see a regularly used OD as a sign of financial mis-management and an inability to handle money well.

Unless you are unemployed LOL

CLAPTON

vaporate wrote: »

Unless you are unemployed LOL

???bizarre?

Dicky2K

Lol, I've tried the thing with giving my card to OH.. Problem is i have all my details on Paypal.. and its Ebay that 'steals' most of my money