Predicament

Squidge29

Hi,

I'm hoping you clever MSE'ers will be able to help me decide what to do...

Me & my partner are finally moving in together after much saving for the deposit (its a rented property):j which is due to be paid on the 25th of this month. Last week i unfortunately crashed my car and now have to pay £400 excess to get it fixed!

My question is do i use my savings to cover the deposit & my overdraft to cover the excess & end up completely broke, or do i take out a small loan to cover part or all of it?

I have no outgoings apart from my phone bill and fuel & earn 12000 a year.

Thanks

Tixy

If your savings are for the deposit then use them for that, no point getting out a loan and having savings in the bank earning a tiny amount of interest.

If you use your overdraft to pay for the £400 excess then presumably by next month you'll be able to repay it all (with such low outgoings). In which case your overdraft is almost certainly going to work out the cheapest way to fund £400. To get a loan for that amount would cost much more.

Do you have a credit card? That might be another option to fund the £400 for just one month depending on the APR, or you could try applying for a new 0% card if you have a good credit history which if you got one would allow you to pay it off over say 2-3months at no cost. Although it would depend how soon you need to pay the £400 out and whether you would receive a new card in time if your application was succesful.