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pay off overdraft or save first?
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happytails
Posts: 1,554 Forumite
We have an overdraft of £700 :eek:
and i would like to reduce this to £100.
Problem is we are saving for a house as FTB and our goal is £5000 in 6 months.
Do we keep overdraft as it is and save like mad for a house or try and pay overdraft off before saving and extend our saving time another 3months or so?
Sarah
and i would like to reduce this to £100.
Problem is we are saving for a house as FTB and our goal is £5000 in 6 months.
Do we keep overdraft as it is and save like mad for a house or try and pay overdraft off before saving and extend our saving time another 3months or so?
Sarah
DFW Total £21,800 to clear by Dec 2022
MFW Total £184,950 £179,066 to clear by 2035
MFW Total £184,950 £179,066 to clear by 2035
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Comments
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Pay of debts before saving. What is the rate on your overdraft?0
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If you are saving at that rate - it should only take you an extra month to pay off your overdraft anyway? Defo pay off overdraft first tho - no point in paying interest at a higher rate than you will receive on savings. (presuming this is the case?)0
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As with the above you need to give us interest rate &'s!
If the overdraft is free then why pay it off yet?
If the interest on overdraft and mortgage is lower than savings account, then go for savings accounts. And vice versa.0 -
not sure on the interest rate. Its a halifax standard debit card if that helps??
Will pay off some of the overdraft - £400 worth and start saving for our deposit seems like the best way
DFW Total £21,800 to clear by Dec 2022
MFW Total £184,950 £179,066 to clear by 20350 -
Pay it all off!0
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If your goal is £5000 in 6 months, this equates to £830 per month - so why don't you just pay it off in the first month?0
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Why not pay off the overdraft?
You will stiill have the facility presumably so can count it as money available for your £5000.
You should decide purely on the interest rates. If you are paying more for your overdraft than you are getting interest after tax then you are losing money by not paying off the overdraft and it will take you longer to save the £5000.
Almost certainly better to pay off the overdraft first.0 -
Stop. Do not pass go until you know the interest rate on every debt and savings account you have. You cannot say that £400 off the overdraft and then start saving is the best way until you know the interest rates.happytails wrote: »not sure on the interest rate. Its a halifax standard debit card if that helps??
Will pay off some of the overdraft - £400 worth and start saving for our deposit seems like the best way
Seriously, get on top of understanding this now, because when you get a house the numbers get bigger and it gets more complicated with Negative Equity. Stop sleepwalking, please.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
im not sure of overdraft interest as its a joint account with my partner and he has all the details.
wanted to pay off overdraft for a few months now so really should get round to itDFW Total £21,800 to clear by Dec 2022
MFW Total £184,950 £179,066 to clear by 20350 -
And another thing...:j:j .... as partners, you both need to have a good overview of where its all at!!!happytails wrote: »im not sure of overdraft interest as its a joint account with my partner and he has all the details.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0
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