Paying off my overdraft

bibblebibble

Hi everyone,

I have a £4000 overdraft with Natwest. They're currently charging interest of £45 per month, which I just can't sustain if I want to clear my debts quickly! I'm guessing it would take me around 3 years to pay off if I give around £150 per month (please tell me if I'm wrong about this!) I would like to have it paid off sooner though, should I get a credit card or loan and pay it off with that?

Thanks,

Bibs

[Deleted User]

whats the apr on the o/d? i suspect a loan for this amount that the apr maybe around the same,and if you clear it with a loan or cc,you maybe tempted to run up the o/d again?You are right at £150 it will take around 3 years,so the more per month you pay the less the interest will be and the quicker it will be paid off(stating the obvious I know)

complimentschemistry

Hi Bibble,

I personally don't think a loan will help, and a credit card is worse than a loan IMO. I'm currently paying off my overdraft too, and the best thing to do is just to keep on paying as much as you can per month. You could try selling a few bits and bobs you no longer use, and put the money earned towards paying a bit more off? This is also something I'm doing, and it's working so far!

Hope I've been of help

bibblebibble

I think it's 19.24% EAR. I admit to being ignorant about this kind of thing!