Paying off overdraft

jenbelcav

I am utterly, totally and officially skint 😪😳

Last year, my car broke down which ended up costing me £1000 in repairs and eventually I had to buy a new one. Because of this, my overdraft is up to its limit. This is adding to my already sky high anxiety and keeping me awake at night.

Should I...
1. Cut down my spending and chip away at my overdraft month by month (with the aim to pay it off by the end of this year).
Or 2. Take out a small personal loan to pay off my overdraft.

Thank you for any advice/tips.

Thank you 😊

YorkshireBoy

You should do [1], because if you do [2] the next time something needs fixing (and it will!) you'll use the overdraft facility again! And then you'll have twice the debt you have now. Better to feel the pain of [1] in my opinion.

Where are your savings? That's your priority as soon as you've cleared the overdraft...aim for 3 months income/outgoings (which it seems are the same in your case!). How about a second job?...more hours in your main job? Make some cutbacks? Sell some things?