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Should I use my student overdraft?

Okay I know this sounds stupid, but all my friends have a PS4 and I really really want one but I cant afford it!

Would it be safe to use an overdraft to buy it? I have an overdraft of like £1500 and I haven't touched it at all yet, wasn't planning on it really but I'm really tempted to buy this PS4!

I'm in 1st year, so If I am right I don't have to pay any overdraft debt off until like graduation or something like that?

I'm from N.I and I am studying in England, I'm planning on transferring home for second year though just to save money and be at home with my family and stuff so my loan won't be going on rent or anything.. which means I can just use a small portion of it to cover how much I've taken from the overdraft? Plus I'll be working all summer in my summer job and I'll probably earn over 1000 doing that too, which would also pay off the part of the overdraft I have used.. I mean I am not going to use all £1500 of it, it will probably be like around £400 quid or something and I'm pretty sure that will be easy to pay off between my work money over the summer and loan money that I wouldn't be spending on accommodation next year as I would be at home?

Thanks for the advice in advance!:biggrin:
Reply 1
Avatar for Kaiju
Kaiju
16
You could, but for a PS4?

Just wait until you have the money, dude.

Don't buy anything you can't afford immediately. Best practice, most logical.
Do an overall budget of your in goings and out goings for the rest of the year and see whether by the end of the year you would still be in your overdraft if you bought the PS4 now.

I have a full budget worked up which I tweak with often to see whether I can afford to buy something I want by looking at the end of year figure.

Oh also it's good to note that whilst you may be planning to transfer back home you may not actually be accepted. Universities differ A LOT so many refuse to take transfers at all and most that so won't allow transfer without immaculate overall grades.
(edited 9 years ago)
I wouldn't use it for that personally. I used mine once because my loan hadn't come through.
work out a budget

personally I wouldn't use my overdraft just because I wanted something I couldn't afford, I have used my overdraft plenty of times but in situations where, for example, my rent was due before SF came in - situations where my budget was sorted there was just a cash flow problem and the money would be there soon

right now you haven't definitely got extra money over summer OR next year so don't budget on the assumption you will
I have only ever used my overdraft in times of emergencies, i.e. rent before student finance and payday. It's a dangerous cycle to get into when you see it as a way to just buy the stuff you want/don't really need. It's the exact same with 'Student Loan Day' and people going out to buy new things. I used my loan for rent, bills and food.
Well if you can afford to pay it back then why not, but don't go over spending it can be very tempting, my sister spent all her overdraft, even through her original intensions were to used it in an emergencies ( roll eyes) lol, it was fine for her, it was reduced from her next student loan instalment, but she had to be very tight with spending for a few months :P
Short answer: no.

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