Pay off overdraft?

colsten

Flobberchops wrote: »

This would stop being the case if part of your overdraft was fee-free. Also I wouldn't personally touch the HTB ISA.

For the majority of First Time Buyers, the HTB ISA will be a stonking deal.

YorkshireBoy

Flobberchops wrote: »

Pay off as much as you can.

Even if it's fee-based, as per my post immediately preceding yours? That's throwing money away isn't it?

...and in the case of an emergency you have an equal sum of available money in either case (dipping either into your overdraft or savings).

And if the bank pulls, or reduces, the overdraft facility once the large payment hits the account? Where's the OP going to get the cash from then?

jimjames

Flobberchops wrote: »

This would stop being the case if part of your overdraft was fee-free. Also I wouldn't personally touch the HTB ISA.

Can you explain your thinking? Seems the opposite of everyone else's view.

colsten

YorkshireBoy wrote: »

And if the bank pulls, or reduces, the overdraft facility once the large payment hits the account? Where's the OP going to get the cash from then?

They could do this any day anyway, and would probably be more likely to do so if they didn't see any reduction in the overdraft balance.

YorkshireBoy

colsten wrote: »

They could do this any day anyway, and would probably be more likely to do so if they didn't see any reduction in the overdraft balance.

I've seen many reports on here, for both overdrafts and credit cards*, where a sudden influx of cash brings about a review of facilities. Always something to bear in mind.


* With credit cards, some providers have been reported as reducing the limit each month or every couple of months as minimum payments act to reduce the balance...Barclaycard and Halifax seem particularly keen on this approach.