Graduate loan vs. Overdrafts.

CheekyMonkey22

I graduated last summer with semi-monstrous debts (in addition to my student loan), which are all interest-free at the moment.

I umming and arring whether to take out a loan to cover my repayments as it may be cheaper in the long run.

My current situation is:
Overdrafts:
Natwest Graduate - £2,000 (0% interest until June 08, But £1,000 needs to be paid by June 06)
Smile Student - £1,800 (0% interest until June 06, after 9.9% until repaid)
Halifax Student - £800 (0% interest until June 06, unknown after)

Credit Cards:
HSBC CC - £2,000 (0% interest until Sept 06)

Also have the added complication that I am starting my new job shortly (woo!), and won’t get paid for ~ 2 months (boo!). I’m looking for advice as to the best course of action and for it to be as cheap as possible. :A

At the moment I can see 2 courses of action:
1. take out £5,000 graduate loan from RBS (at 7.9%) to cover the £1,000 Natwest, Smile and Halifax OD and have a bit left over for my move.
2. Don’t take out a loan and pay off my overdrafts as and went I can and live on credit until my salary comes in.

Any suggestions are gratefully received. Interested to see what everyone thinks.

ms_london

I wouldnt apply for another loan whilst your current debts are interest free. Could you not get another 0% credit card or overdraft to tide you over until your salary comes in? Your bank might be more lenient if they know its a temporary loan & if you are going to pay it back on X day.