Should I Leave my Overdraft Unpaid?


There are many financial decisions that we need to make and they can be really important. They can influence out credit report, how much money we have and our stress levels. They can be crucial in our relationships as well and so it is really important to make sure that we make the right decisions so that we can manage things as well as we can. Therefore, when we are asking ourselves questions like whether to repay our overdraft or not, then we need to give it a great deal of thought. It is important to consider the advantages and disadvantages so that we can decide whether it is the right decision for us or not and also think about the longer-term impact that it might have.


It is a good idea to work out how much it will cost for you to do this with your overdraft. You will find that the overdraft cost is a percentage, which refers to how much interest would be charged if you kept the debt for the year. So to then work out how much it will be per month, week or day you will have to do some calculations. It is a good idea to work out how much it will be, because then you will be able to decide whether you think that it is worth it. You will be paying each day for owing the money and you will need to decide whether this is something that you think is worth it or not. You need to calculate the cost so that you can decide whether you are happy to pay that charge for holding the loan. If you do not think that it is good value then you should be trying to get it paid off.

Credit Record

It is also worth knowing that it will show up on your credit record. You may not worry too much about this, but it could be important. If you want to borrow a larger loan, perhaps a mortgage, for example, your credit record will be looked at in detail. If it is seen that you are holding an overdraft and not repaying it, then it will be frowned upon. Lenders want to look and see that they will be able to trust you and they will not like the fact that you have this unpaid loan and so it is a good idea to make sure that you are aware of this and consider this. Also, others will look at your credit report too, insurers and landlords, for example and it could lead to you having to pay more for your insurance because you are seen as a risk or you may even be turned down for a home. So, it is really important that you think of the consequences of this.


It can be stressful owing money. Even if you think that you are okay with it, it could get on top of you after a while. You could worry about the money needing to be paid or it could be the consequences of owing it that are a problem. It is worth thinking about whether this could have an impact on you. Of course, the extent of the impact will also depend on how much money you actually owe and what income you have and things like this, so it is worth having a think about your personal circumstances and what things are likely to happen in the future so that you can decide on how it will impact you. Try to consider a worse case scenario to ensure that you make the right decision.

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