Best way of shifting £1000 overdraft before interest kicks in?

Eoin_McLove

Hi,

I currently have an interest-free £2,000 overdraft on my Natwest graduate account, but this will be reduced by the bank to £1,000 by the end of July. My overdraft is right up to the £2,000 limit, and I need to shift £1,000 by the end of next month to avoid the extortionate interest charges.

I recently got an Egg Card (£1,250 limit) with 0% on BTs until December 2006, and had planned to just shift £1,000 of the overdraft on to this, and then switch this on to another 0% card before the Egg Card's introductory interest-free period ends.

Does anyone have any other suggestions for shifting this overdraft?

I start work as a trainee chartered accountant in August after I leave university, and I'm on a tight budget, so I need a cheap solution.

Thanks,

Matt

hostie

Ask the bank for an interest free loan at 0% to pay the overdraft off. I know the Royal Bank of Scotland do these for graduates.
I am in the same situation but as I am a postgraduate I have already had the 0% loan and am not eligible for another one. If anyone has any suggestions for me then let me know.
I will look into the egg card.

Eoin_McLove

Yeah, I'm a postgraduate too. Natwest doesn't have a postgraduate account, only a graduate one, so although I've been studying full-time for the past year, I've been treated as someone who left university a year ago, who's now in full-time work, and therefore who can be reasonably expected to pay off his overdraft. Had I opened my original student account and declared that I was on a four-year course (I wasn't, but it's four years with the MA!), rather than just the three, then I would be fine. I suppose I could go into Natwest and explain my situation. I did think of going in there and begging for an extension on my interest-free £2,000 overdraft, but the 'advisors' tend to be very unhelpful and don't understand the difference between undergraduates and postgraduates - and those I have spoken to before are supposed to be 'graduate managers'!

I also have an £8,000 Barclay's Career Development Loan to pay off starting this November. Naturally, I'll be paying off this ludicrously expensive loan with a cheaper one.

Why oh why did I choose to do an MA in Holocaust Studies...

seven-day-weekend

>>why did I choose to do an MA in Holocaust Studies... <<

Probably somewhat useless! But there are plenty of professions where they are not bothered about what discipline your qualifications are in!

seven-day-weekend

Eoin_McLove wrote:

Yeah, I'm a postgraduate too. Natwest doesn't have a postgraduate account, only a graduate one, so although I've been studying full-time for the past year, I've been treated as someone who left university a year ago, who's now in full-time work, and therefore who can be reasonably expected to pay off his overdraft. Had I opened my original student account and declared that I was on a four-year course (I wasn't, but it's four years with the MA!), rather than just the three, then I would be fine. I suppose I could go into Natwest and explain my situation. I did think of going in there and begging for an extension on my interest-free £2,000 overdraft, but the 'advisors' tend to be very unhelpful and don't understand the difference between undergraduates and postgraduates - and those I have spoken to before are supposed to be 'graduate managers'!

I also have an £8,000 Barclay's Career Development Loan to pay off starting this November. Naturally, I'll be paying off this ludicrously expensive loan with a cheaper one.

Why oh why did I choose to do an MA in Holocaust Studies...

There's a lot of questions there now Ted.......

CLAPTON

yes
transfer 1000 to your EGG card and think again nearer december

Eoin_McLove

I've just checked the Natwest website, and they have a 'Graduate Overdraft Repayment Plan'. I can borrow up to £2,000 interest-free and repay it over up to three years! Jackanacknori! :j

However, if I were to take £2,000 over three years, presumably my monthly repayments would be £2,000/36 months, i.e. £55.56 per month. This is too expensive for me. Plus I only need to get rid of £1,000 of my overdraft, not the whole £2,000. So, if I were to take £1,000 over three years, I'd be paying back £27.78 per month. Compared to the Egg Card solution, this still isn't good value. With Egg, I could do the £1,000 balance transfer, and then make the minimum monthly repayments at 2%, i.e. £20 per month, and less as the months pass. There is 2.5% balance transfer fee - so £25 for me - but it still works out considerably cheaper. In short, on a 0% credit card, making the minimum repayments each month will cost me roughly £240 per year; with Natwest's repayment plan, it'll cost me £333.

Thanks for bringing that to my attention though, hostie. Hadn't even thought of it.

Will have to get my overdraft down from -£1,000 to -£500 in July/August 2007. Shouldn't be too problematic though.

Eoin_McLove

seven-day-weekend wrote:

>>why did I choose to do an MA in Holocaust Studies... <<

Probably somewhat useless! But there are plenty of professions where they are not bothered about what discipline your qualifications are in!

Hey, I wanted to go on to do a PhD on antisemitism within the British Far Right, and it sat well with my BA History.

You're right: the majority of professions isn't concerned with discipline, just academic record and university quality. That said, travel and tourism isn't going to get you much further than, well, the travel and tourism scene.

Snich

Erm yes, but after a further year, the interest free level will decrease again usually to 500 then a further year to 0. You are going to need to pay it off at some point (or will end up paying interest) so why not take the full interest free loan. 55 pounds per month - is achievable with a bit of planning.

Good luck, Snichx

Eoin_McLove

Yeah, I know; I said in post #7 that my overdraft will have to be reduced to -£500 in July/August 2007 (and then to £0 in July/August 2008). This won't be a problem to pay off because, providing I pass my accountancy exams and get on well at work, I'll get a good pay-rise around July 2007, in addition to exam-pass bonuses throughout the year. My concern at the moment is simply to reduce my overdraft now by £1,000 as cheaply as possible.

Having done a few sums, I think the Natwest Overdraft Repayment Plan is going to be the better deal. Borrowing £1,000 from Natwest over the maximum three years will cost me £27.78 per month, which I can certainly afford. Using a 0% credit card will cost me £26.52 per month, but although it's slightly cheaper per month, I'll have two problems: firstly, I'll have to keep fannying around changing the credit cards when the 0% periods end; secondly, I'll have BT fees every time I do this.

My only worry with going with the Natwest plan is that this could affect my credit rating and make it more difficult for me to obtain the £8,000 loan to pay off my Career Development Loan this October. But it's only a £1,000 loan from Natwest, so surely it won't really affect my ability to get the £8,000 loan?

Joey_3

Eoin_McLove wrote:

the 'advisors' tend to be very unhelpful and don't understand the difference between undergraduates and postgraduates - and those I have spoken to before are supposed to be 'graduate managers'!

I found this too, most banks I asked at gave me a big spiel about their fantastic student accounts but didn't seem to understand the fundamental part of my question: "Do you have an account for postgraduate students?". In one bank the girl failed to understand and had to get someone else who also didn't understand:

Me: "Hello, do you have an account for postgraduate students?"
Advisor: "Yes we have details here of our student account blah blah"
Me: "But is that for undergraduate students only or does it cover postgraduates?"
Advisor: "Ermm, it's for students, are you a student?"
Me: "I graduated from my undergraduate degree last summer, but I am going on to do postgraduate study this year"
Advisor: "So you've finished studying then? In that case you'll want our Graduate account"
Me: "No, I have finished my undergraduate degree and now I am going on to do a postgraduate course"
Advisor: "I'm sorry?"
Me: "I'm starting a Masters course in September, I will be a student but I will be a postgraduate student as I've already completed my undergraduate degree"
Advisor: "So are you still studying?"
Me: "I will be in September, yes"
Advisor: "But you've already finished??"
Me: "I have finished my undergraduate degree yes"
Advisor: "I don't understand sorry, I'll get someone to help you"

Pretty much the same story with the second advisor, but eventually I think they understood, they said no anyway!