Use my ISA to pay off overdraft?

gg2011

Morning all,

Been a while since I've posted something but after some advise.

I've got 3k saved in the new government ISA but have an overdraft of 2.9k......Should I slowly pay off my overdraft or use the ISA to pay off my overdraft and start fresh.

I'm not looking to buy a house for another 2 years

I'm paying £40-£50 interest a month on the ISA

nkkingston

Is it the help to buy isa? I think there are limits on taking money out of that for non-house reasons. Otherwise, it's a matter of looking at which results in you having more money at the end of the day: if the overdraft costs you more in fees and interest than you're getting on the ISA, pay it off. if the ISA is making more in interest, pay the overdraft down more gradually.

Helvetica_Van_Buren

gg2011 wrote: »

Morning all,

Been a while since I've posted something but after some advise.

I've got 3k saved in the new government ISA but have an overdraft of 2.9k......Should I slowly pay off my overdraft or use the ISA to pay off my overdraft and start fresh.

I'm not looking to buy a house for another 2 years

I'm paying £40-£50 interest a month on the ISA

gg2011 wrote: »

I'm paying £40-£50 interest a month on the ISA

Do you mean earning £40-£50 interest per month from your ISA?

I'm not familiar with the terms of such an ISA but presuming there are no limits or penalties on moving your money out, and presuming the interest you pay for your overdraft exceeds the interest you earn on your ISA, you should definitely use your ISA to pay off your overdraft.

gg2011

The ISA is with Halifax. The government one where you get bonuses for inputting funds each month.

Reference the overdraft I'm getting charge about £40 - £50 a month in charges (for being in overdraft)