Natwest graduate help needed.

laz1985

Hi everyone,

I have a Natwest overdraft limit of £2000 (which iv'e used all of) which is interest free, i'ts due to be reduced to £1000 on Tuesday and then i will be paying 16.5% interest on the £1000 that's left (as i won't be able to pay this off by then).

I've been very stupid and put my head in the sand about this and my banks closed sundays so i'm asking for your help.

- Can you explan to me how much i'll be paying off in interest...will it be £160.50 a month?

- Do you think it's wise to get a small loan, just to get rid of this silly overdraft and make a direct debit so i keep up with repayments, if so anyone know which loans are better?

Thank you for your help

opinions4u

16.5% is an annual rate.

£165 a year is the interest charge, assuming you don't reduce the capital owing below £1,000.

A small loan would probably charge you a higher rate than this. I'd suggest paying as much as you can as soon as you can to clear the debt.

£100 a month will clear it all within 11 months or so ... pay more and it will be sooner.

laz1985

I'm not sure i'm explaining this properley,

I owe £2000, and that was all interest free but as from wednesday only £1000 is interest free, the remaining £1000 is charged at 16.5%. I still owe the full amount so will be charged the 16.5%. I will easily be able to pay it off in a few months.


Is it definatley only 16.5% annually (160.50 per year works out bout £13 a month paid in interest on my account then?)


Sorry for muffled messages, just want to really make sure i get this right!;)

opinions4u

laz1985 wrote: »

Is it definatley only 16.5% annually (160.50 per year works out bout £13 a month paid in interest on my account then?)

£1,000 @ 0% = no interest
£1,000 @ 16.5% = £165 interest annually (£13.75 monthly), assuming you only pay the interest and don't reduce the debt.

If you are reducing the debt, the interest charge will be less.

laz1985

:oThank you so much for helping me out, i thought 16.5% would be a monthly charge...so you can imagine how panicked i was! I now vow to pay off the £1000 before xmas (you heard it here first!)...thank you very much for your help!

agsnu

You might want to look in to the Graduate Overdraft Repayment Plan.