Borrowing Sensibly
Managing your overdraft
An overdraft offers the flexibility to smooth-out irregular expenses across the year and help you manage your cash flow better. An overdraft also avoids unnecessary fees and charges for customers where they accidentally go overdrawn. As well as this, the application process is also easy and convenient.
No matter what you are borrowing for, it's important that you choose an amount and term which you can comfortably afford.
- If you have an overdraft facility, ensure you know your agreed limit and stay within this to avoid incurring overlimit item charges
- If you have any difficulty paying back your overdraft then talk to a financial adviser early, they will try and help you to find a way to manage your payments that you can afford
Find out more about Overdrafts available online from Bank of Ireland.
Managing your credit cards
Credit cards can offer a convenient and flexible way to buy things when you need to without having to carry cash. However it is important that you keep on top of your spending so your balance does not creep up on you. Here are just a few tips to help you manage your credit card with ease:
- Set up a banking 365 online account* and keep a close eye on your card usage
- Remember you usually have 56 days interest free credit so make sure you pay off your balance before interest is due
- Set up a direct debit for your minimum payment and avoid late payment fees and penalties
- Ensure you know your credit limit and stay within this to avoid incurring overlimit fees
- Credit cards are a convenient and secure way of short term borrowing but if you find that you are unable to clear your balance over the long term talk to us and we will work with you to find a solution
Find out more about the range of Credit Cards available online from Bank of Ireland.
*Terms and conditions apply to 365 phone and online services.
Managing your loans
A loan can help to smooth out the gaps between what you earn and what you spend and can also be useful to buy larger purchases such as a holiday or a car.
But no matter what you are borrowing for, it's important that you choose an amount and term which you can comfortably afford.
- Work out exactly how much you can afford to pay each month and then choose an interest rate that suits your circumstances:
Fixed rates will ensure that you pay off the same amount each month.
Variable rates will go up and down, but they will allow you to pay your loan off early as you can pay off lump sums as you wish - Consider your flexible payment options. Design your payment schedule to suit you and if necessary take advantage of any payment breaks to help you manage your loan*
- If you have any difficulty paying back your loan then talk to a financial adviser early, they will try and help you to find a way to manage your payments that you can afford
Find out more about the range of Loans available online from Bank of Ireland.
* Deferred payment options are only available to customers who repay their loan monthly. Deferred payments are spread over the term of the loan and must be applied for and agreed by us prior to drawdown.
Terms and conditions apply to loans and overdrafts. Applicants must be 18 years or over. There is an annual overdraft facility fee (currently €25).The current variable overdraft interest rate (including the fee) is 15.9% APR (this is based on a representative example of €1,500 over a 12 month period. Total cost of credit is €208.85); the rate quoted is correct as at 25th August 2011 and is subject to change. Overlimit item charges are payable where an account exceeds (or further exceeds) the agreed overdraft permission or goes overdrawn (or further overdrawn) where no agreed permission exists. Full details of these overlimit item charges are available from any Bank of Ireland branch. In addition, an interest surcharge of 0.6% per month (7.2% per annum) (minimum €2.54 per month) will apply Where accounts do not revert to credit for 30 days during a 12-month period, an interest surcharge of 0.75% per annum will be charged
This advice is of a general nature and should not be relied on in relation to a specific issue without taking appropriate financial, insurance, investment or other professional advice. All opinions constitute best judgement at the time of publication and are subject to change without notice.