'One accounts'

[tigwig]

does having all your finances in place make better financial sense than having a seperate mortgage, credit cards and loans etc. I have read an advert and obviously it sounds good but how exactly do these one accounts work?

[Loosehead]

if you add up all your debts savings etc including mortgage then most people with a mortgage would be in debit. The one account operates like a giant overdraft. What they are saying is that it is pointless having savings when you have a mortgage or other debts. To offset the liquidity that savings give the account will have some flexibility to borrow more if needed. With salary being paid in etc then you should only be paying interest on each pound you actually need to borrow at any one time. The interest rate though is a little higher but you should save on interest. The major drawback is that you need discpline if you are ever to repay your mortgage.

[Peter Pedant]

Yeah it is sensible,
because unlike me,
You would not have savings at 4%

and a huge overdraft at 6%

but sort of a kinda elastic overdraft for which you may even pay less !

AND against is.......

Having persuaded myself it was a fantastic idea in general, specifically,I could never find a system whereby I had less interest to pay !
I mean it was crazy, instead of having savings of 20 and a mortgage of 80 - choose you own units
you get an elastic overdrafty thing of 60 and the interest was such that I ended up paying MORE !
So I never got one.

Be sure to do your maths.

[tufty7]

As already said , you have to be very cautious and in control , it is not for those who impulse buy and want easy access to money , this could get some into debt ,

I for one have found the one account to be very beneficial and am on target to pay it off in the next 5 years , saving thousands, its right for me but only you can say if its right for you .

[BRIGHT SPARK]

If youre a saver ,they are great.if youre a spender ,dont go there