how to pay back an overdraft??? HELP

sarahegg

This is my first thread, so I hiope im in the right place?

I graduated in 2005, had a year in work and then went on to do a masters for 2 years, graduating this june.

My overdraft is £2000 from my first degre and im paying around £35 a month interest. Ive just got my first job, so really want to start paying it back.

I wanted to pay around £80 a month off it, but £35 of that would be interest alone.

Ive been reading about switching to another bank - but how can i do that if i owe £2000 to natwest?

im very confused?

Help please!

Sharon87

I think opening up another bank account would be ok, as long as you don't get an overdraft on it. Get your wages paid into your new account, then transfer £80 a month (or whatever you can afford) into the account with the overdraft. Set up a standing order so you don't forget.

The interest will soon reduce once you've started paying it off.

Sharon87

Another tip. More of a money saving tip, can you earn extra money by selling items you no longer need on ebay? I've been doing it and I've made quite a bit of money, some of which will be going to pay my overdraft off! (it's interest free for now, but not forever!)

slummymummyof3

Surely, if you are not paying your salary into the account with the Natwest, they have the right to ask for you to pay the overdraft back with fairly immediate effect? I would check this out before going down this route.

Ideally you need to be paying off this overdraft quickly as the interest rate is steep. Now that you have a regular income coming in, it should be much easier. Post your SOA so that people can help you budget accordingly so that you can pay back at a faster rate (if that is possible.)