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Loan vs Overdraft, help!

Hello,

I was wondering if anyone could give me some advice about this.

I am self employed and also a part time student, trying to make ends meet and am currently living in my overdraft. My course fees are £200 a month, which is what constantly puts me in trouble and I can't save.

I need to extend my overdraft again by another few hundred so I went into the bank. The lady I spoke to said that I would be better off getting a loan from them, as I would be out of the overdraft and could make monthly repayments over 2 years.

It would give me a buffer, but I'm nervous about taking out a loan, does anyone know what is best?!

Thank you in advance! :)

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you're not able to save anything each month, how would you make the loan repayments?

    And without any change in your circumstances, getting deeper into your overdraft isn's a solution. You need to look at cutting costs.
  • thriftylass
    thriftylass Posts: 4,076 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    The problem I see is if you can't pay your way out of the overdraft how will you pay off the loan. And what are you studying that costs £200 pounds a month. Could you possibly ask a family member to help you out or get a student loan rather than a proper one?
    01/26: OD £1200 600, CC £3914 3317, family £3100, loan £5618 5306- total: £13832 12323, mortgage £58,243
  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How much do you earn being SE ?
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