Going abroad for a year but owe £2500

Chris_Durden

hey all, first post on here hope you can advise..

im off to australia in 6 weeks for a year but i have a £2500 loan (HSBC)

currently i pay £75 a month

now, i would like to see your ideas on how i can pay this off before i go

my idea is this;

open 3 current accounts with low interest/interest free overdrafts and use these to pay off my loan - the interest on being in the overdrafts will be pennies

this way i dont have to worry about making sure i have £75 in my account every month to cover my loan payments, as i dont know if i will always be working abroad and want to be as free as possible

anyway, thats my idea i would appreciate your thoughts


chris

jonesMUFCforever

Chris_Durden wrote:

hey all, first post on here hope you can advise..

im off to australia in 6 weeks for a year but i have a £2500 loan (HSBC)

currently i pay £75 a month

now, i would like to see your ideas on how i can pay this off before i go

my idea is this;

open 3 current accounts with low interest/interest free overdrafts and use these to pay off my loan - the interest on being in the overdrafts will be pennies

this way i dont have to worry about making sure i have £75 in my account every month to cover my loan payments, as i dont know if i will always be working abroad and want to be as free as possible

anyway, thats my idea i would appreciate your thoughts


chris

Best way to pay it off is to find £2500 and pay it off!
If this is not an option (how did you manage to pay for flight?):
What bank is likely to offer you low cost or interest free o/d if you won't be paying in?
Opening 3 accounts with 3 different banks in a short space of time is likely to harm your credit rating.
Seriously though if you have no-one to pay for you while you see the world(mum and dad!) have you considered getting a refund on the flight (£600ish?)pay into the loan account to reduce balance, delay your plans for 6-12 months get a job repay your committments THEN go and see the world.
Not what you want to hear - but you did ask for comments!
Whatever you do remember the loan will not go away!
Eric

grumbler

Agree with ejones999: if you cannot afford to travel - do not travel!
Regarding overdrafts - be aware that all overdrafts are repayable on demand and large free overdrafts are subject to status and other conditions. I do not think that you have chances to get more than usual £250 in Cahoot.