We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Pay it back now or later?
charlie792
Posts: 1,744 Forumite
Basically I have a £1600 student overdraft from my time at uni. This is pretty much maxed out.
I have now started working full time and would have money spare after bills. My overdraft is interest free at present and will be for 12 months at which point interest will be charged on any remaining amount over £1000.
This by my calculation means to avoid any interest charges I must pay off £50 a month for the next 12 months.
The question is I can techically afford more than this £50p/m but I don't know if I should pay back more than I should, knowing that it is interest free for the next 12 months anyway?
I have now started working full time and would have money spare after bills. My overdraft is interest free at present and will be for 12 months at which point interest will be charged on any remaining amount over £1000.
This by my calculation means to avoid any interest charges I must pay off £50 a month for the next 12 months.
The question is I can techically afford more than this £50p/m but I don't know if I should pay back more than I should, knowing that it is interest free for the next 12 months anyway?
MFW 2020 #111 Offset Balance £69,394.80/ £69,595.11
Aug 2014 £114,750 -35 yrs (2049)
Sept 2016 £104,800
Nov 2018 £82,500 -24 yrs (2042)
Aug 2014 £114,750 -35 yrs (2049)
Sept 2016 £104,800
Nov 2018 £82,500 -24 yrs (2042)
0
Comments
-
Get an ISA, preferably one offering a higher rate for regular savings, and set up a DD for £50. Add anythign aelswe you can if that is allowed.
You may only get an extra tenner interest but at least you have the money saved to get the OD below the limit whent he time comes.If you've have not made a mistake, you've made nothing0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards