Santander Cheeky ******

MonkeyMad

Whopping interest rate? Come on, on this overdraft it is already enormous!

£1000 loan, repay £1096 over 12 months ie total charge £96.
Overdraft £450, repay £20*12=£240 in charges (and still owe £450 O/D)

Can't do it in a year - try two

£1000 loan, repay £1192, over 24 months total charge £192
Overdraft £450, repay £20*24=£480 (and still owe £450 O/D)

Two years a bit tasty? - try three

£1000 loan, repay £1291, over 36 months total charge £291
Overdraft £450, repay £20*36=£720 (and still owe £450 O/D)

What about a repayment close to the O/D fees £25/m
£1000 loan, repay £1505, over 60 months total charge £505
Overdraft £450, repay £20*60=£1200 (and still owe £450 O/D)
Loan = No brainer

Getting £1000 loan doesn't mean you have to spend the residual £550 you know, you could just sit on it in an interest bearing account. Its all out the most effective use and overall cost of credit not necessarily the amount you have taken.

Getting a loan from a doorstep lender just because you only wanted £450 if you were able to get a £1000 loan at these rates would be quite frankly stupid. If you can't get this rate there is no option but to cut spending or ask for a repayment plan

Anthorn

MonkeyMad wrote: »

Whopping interest rate? Come on, on this overdraft it is already enormous!

Exactly

MonkeyMad wrote: »

If you can't get this rate there is no option but to cut spending or ask for a repayment plan

Which takes us back to square one in which people are locked into the account when in fact they would be better off moving to a different bank. Some people will be able to afford a fiver a month but not £20 a month. Personally, I would tighten my belt and eat spaghetti rings for a few months as I did do way back in 2008/9. But not everyone can do that.

I think we'll have to agree to disagree.

Melissa22_Mum

Why 'probably a doorstep loan' Don't know where you got that assumption from.

I'm frigged off because they want to NOW charge me 20.00 a month and I think it stinks. I was paying 7.50 for ages. I'll pay the overdraft back as best I can. I never said I wasn't going to. I didn't say I was going to borrow from a doorstep lender. I never had and never would. I think the charges are crap as well. If you borrowed 93 pence would you expect to have to pay 25.00 back aswell?

Anyway. Once the overdraft is paid off, I'll be saying tatty bye to Santander.

Melissa22_Mum

As for paying the overdraft with the savings on interest with the credit card. Well, thats not an option. I'm not paying the minimum I'm paying extra so I can clear the balance before the 23 months is over.

YorkshireBoy

Melissa22_Mum wrote: »

As for paying the overdraft with the savings on interest with the credit card. Well, thats not an option. I'm not paying the minimum I'm paying extra so I can clear the balance before the 23 months is over.

You need to re-think your approach.

Firstly, even if you don't clear the credit card debt the chances are it will be cheaper borrowings (at 16.9% APR representative) than your overdraft rate, and secondly...

Why on earth are you overpaying something which you don't have to?...it's 0% for goodness sake! Nearly 2 years of 0% in fact...time enough to pay down the overdraft surely?

Melissa22_Mum

I want to get the balance down before the interest kicks in. I know it's 0%, taking advantage of that is ensuring that the balance is cleared before the interest rate begins. It's actually 19%. We budgeted after moving, sorted everything out finance wise, I found out yesterday that I'll be paying 20.00 a month and I'm annoyed about it.
I'll pay it and that's that, I didn't think this would turn out to be a big fuss about changing banks and rambling hypothetical conversations. I was having a bit of a rant and wanted to see if anyone else was in a similar situation.

YorkshireBoy

Melissa22_Mum wrote: »

I found out yesterday that I'll be paying 20.00 a month and I'm annoyed about it.

I found out about it several months ago (they need to give you at least 60 days notice) when I read the e-mail notifying me of the changes. If you're paperless you need to check your e-mails/secure messages more frequently.

I was having a bit of a rant and wanted to see if anyone else was in a similar situation.

Everyone with your account type (and using the overdraft facility...myself included*) will be in your situation.

You can rant all you like, but surely advice (of the type I've given) is welcome too?


* I have a £10K overdraft. It started out free...then £5/month...then £10/month. Now mine is £20/month, representing a 2% APR cost. Fortunately it's offsetting my 3.75% mortgage so I'm still 'winning'.

Anthorn

Melissa22_Mum wrote: »

Why 'probably a doorstep loan' Don't know where you got that assumption from

It was in general, not aimed at you specifically

Melissa22_Mum wrote: »

I didn't think this would turn out to be a big fuss about changing banks and rambling hypothetical conversations. I was having a bit of a rant and wanted to see if anyone else was in a similar situation.

That's the nature of discussions. Probably ideally all posts should relate to the OP but there's usually something that crops up that's related to it that prompts people to jump on their soapbox.

trikidy

I was with Santander, I had 3 accounts. I would spend money on one account and then move money over from another account. I also had an ISA. Sometimes I would go into the -, due to paypal taking funds at a later date without me realising, as soon as I logged on online I would move the money over. I did this for 4+ years. Last year about August they charged me loads of charges, one was £20 for going into -, and £15 for spending in the minus for a cable of amazon for £2.99. I closed my account instantsly.

A joke of a company.

Melissa22_Mum

Yep. That's happened to me too. Paypal are a right pain in the backside for that.

If they reflected the charge on what you've gone over by, I wouldn't mind at all. 93 p for 93 p! It's when it's for a miniscule amount that's probably not even been touched in reality by the time you've put money back in.