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Credit card, overdraft or savings?

vallster

vallster Posts: 14 Forumite

13 February 2011 at 10:09PM in Debt-free wannabe

I am about to get a £1900 bonus and don't know what to do with it.

I have £1400 overdraft (paying about £15 a month interest). I pay £170 a month off of this.

A tesco loan £11.500 (paying a set £250 a month for 3.3 years.) No fee to pay lump sums in above monthly payment.

I have no savings and would like to buy a house in the next 3 years.

I was wondering what the best thing to do with the money would be. Save it, or pay it off one of the above.

Advice needed...

Thanks!

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Comments

paranoidpete Posts: 9 Forumite

13 February 2011 at 10:13PM

i would pay off your overdraft as you never know when the banks will change there fees or ask you to pay the overdraft off

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FLAPJACK Posts: 524 Forumite

13 February 2011 at 10:22PM

Payoff which ever is charging the most interest...probably the overdraft. Save the remaining £500.

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MFWannabe Posts: 2,459 Forumite

13 February 2011 at 10:25PM

Pay off overdraft and put £500 into savings

MFW 2025 #50: £1139.75/£6000

12/06/25: Mortgage: £65,000.00
07/03/25: Mortgage: £67,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38

27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000

07/03/25: Savings: £16,500

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beanielou Posts: 95,737 Ambassador

13 February 2011 at 10:34PM

A vote for pay off OD from me too & save the rest.

I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

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Mowgli87 Posts: 139 Forumite

14 February 2011 at 3:42PM

Pay off the overdraft, but the extra into savings. Then youll be saving and extra £170 a month to put towards a deposit

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