Loan vs Overdraft, help!

divapazza

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!

[Deleted User]

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

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?

DCFC79

How much do you earn being SE ?