Argument Between Husband And Wife

binnie

Can anybody tell me who is right.
Yesterday I went for quote to the bank and they said if we switch mortgages and put all our debts together, they can save us about £100 a month.

The argument is, hubbies wage brings in less than what we pay out so every month he is either £200 overdrawn leading to £400 some months.
As we go into the overdraft to pay the credit card for example, we always get overdrawn .
He thinks if we pay the card off we will save the £100 a month from that and then a few months down the line, we will be able to save that £100 in a savings account.

But as we pay the card via the overdraft, we won't actually be any better off financially, just £100 better off in the overdraft.

If anybody understands what I mean, please can you settle the argument.

I said we won't be able to save the £100, he thinks we can.
I said the credit card was always being paid by going into the overdraft, so it will only make the overdraft lower.

Help

Mikeyorks

binnie wrote: »

If anybody understands what I mean, please can you settle the argument.

You're quite right. If you save £100 overall then you reduce the monthly 'into overdraft' from £200 .... down to £100.

So there's nothing to save ..... and you shouldn't be in any event if you've got debts where the APR is greater than you will save? Getting rid of the debts then overpaying the (new increased )Mortgage sounds better.

binnie

:mad: Hi, I showed him your post and still he thinks he is right. :mad:

Mikeyorks

He's male!

Goes with the territory ..... even though he's wrong.