Overdraft advice for DFW...

RogueandLola

Hello all,

This is a bit long winded so I do apologise!

Been a bit of a hectic year so far with lots going on. Brief outline for all.

Bought our first house in January after getting 100% debt free in 2010-11. Then found out my fianc!e was pregnant (later had a miscarriage sad day..).

We got out a loan as we wanted to make sure our 'baby room' was all decorated, we had all the equipment in time and we needed a new car (a big estate for our dogs and the child we were expecting).

I am now trying to get us back on our feet. One thing after another has gone wrong and I am trying to get back out of debt. The loan is 5 years and I want it gone in 3. I also want to over-pay on the mortgage so will be trying to top up my earnings and also get a better paid job (I'm paid a crap wage and so is my fianc!e).

I have a plan in place to start saving and clearing debt, but first I need to pay off one or two things so I don't incur more direct debits.

What do people think of me paying these larger amounts off using my overdraft and using the money saved each month to pay the overdraft off within 6 months or so?

Long winded way of asking your opinion but it was to give you a clear view of our situation.

Thanks for reading...

asparagus1968

it would depend if the charges on the OD are less than the interest on the other things i would imagine?
if you fill out the snowball calculator (at makesenseof cards ) with the debts and the balances and the interest rate it will calculate for you the cheapest way to pay off the debts.
good luck

[Deleted User]

RogueandLola wrote: »

Hello all,

We got out a loan as we wanted to make sure our 'baby room' was all decorated, we had all the equipment in time and we needed a new car (a big estate for our dogs and the child we were expecting).

How much is the loan? What's the APR? How long are you paying it over? And are you allowed to make penalty free over-payments? Is is secured or unsecured?

I am now trying to get us back on our feet. One thing after another has gone wrong and I am trying to get back out of debt. The loan is 5 years and I want it gone in 3. Make sure that there are no extra/hidden charges for paying it off quicker I also want to over-pay on the mortgage Wait until you are 100% debt free and have a buffer fund (about 3-6 months outgoings - in case an unexpected expense crops up) so will be trying to top up my earnings and also get a better paid job (I'm paid a crap wage and so is my fianc!e). have a look at the "up your income" board here for some inspiration for earning a bit extra)
It would really help people know where you are financially and be able give you advice accordingly if you were to post an SOA

I have a plan in place to start saving and clearing debt, but first I need to pay off one or two things so I don't incur more direct debits.

What do people think of me paying these larger amounts off using my overdraftA bank can ask for an overdraft to be repaid immediately - so unless you have the cash accessible somewhere else, this is not a good idea - and I am assuming that if you did have the cash available somewhere then you would just pay the debt off directly? and using the money saved each month to pay the overdraft off within 6 months or so?

Long winded way of asking your opinion but it was to give you a clear view of our situation.In order to be able to give you a better opinion, then you really need to post a full Statement of Affairs (SOA) http://www.makesenseofcards.com/soacalc.html (when complete, format for mse and copy and paste here removing links)

Thanks for reading...

It does sound that you have both been having a rough year. I have made some comments above, but in order for anyone to give you any really advice they would need to have a better picture of your finances - if you post an SOA this will help people be in a position to advise you better.

Good luck,

D9