Graduate interest free overdraft

LaurenM9

I have a graduate account with Natwest and have an interest free overdraft of £2000. I have just received a letter saying that this will be reduced to £1000 in a months time. Due to struggling to find a decent job after finishing i am not currently out of this limit and am worried about paying the 17.8% interest in a months time. Is there anything i can do to extend the overdraft limit by a couple of months does anyone know? I am now in a stable job and could easily reduce my overdraft in a few months.

xylophone

Discuss with Natwest.

Sharon87

I doubt it, but as has said discuss it with Natwest. Don't worry too much though, it won't cost too much in interest.

How much are you into your overdraft by? You may pay a few extra quid in interest, but as long as you can reduce the overdraft in a few months all should be good.

StanVanDamn

How much into your overdraft are you Lauren?

Sharon - cant say how you can say don't worry about it - potentially she could be paying £356 a year.

If Natwest say that they cant help you - my only suggestion would be is to take our a credit card with balance transfer on it and 0% interest for a few months. You can transfer money from the card into your account and clear the overdraft.

The debt would then go onto the credit card instead - just make you sure you pay off the debt before the 0% deal ends. I know the post office credit card could do something like this.

jonesMUFCforever

Why not ask Natwest to convert the overdraft into a Graduate loan with repayments that you can afford.

Sharon87

StanVanDamn wrote: »

How much into your overdraft are you Lauren?

Sharon - cant say how you can say don't worry about it - potentially she could be paying £356 a year.

If Natwest say that they cant help you - my only suggestion would be is to take our a credit card with balance transfer on it and 0% interest for a few months. You can transfer money from the card into your account and clear the overdraft.

The debt would then go onto the credit card instead - just make you sure you pay off the debt before the 0% deal ends. I know the post office credit card could do something like this.

The OP said they'll be able to pay it off in a couple of months anyway, well get into the interest free portion anyway, so they wont be paying over £300 a year. Natwest is an interest rate, not a rate per day as well. So if they're say £1400 into their overdraft, £400 of which is charged at 17.8% interest. Then they'll pay £5.93 for that month. But if they're at their limit for a whole year they'd still only pay £178 in interest.

Don't forget with 0% cards there are fees, so it might or might not be worth it. Transferring £400 at a 3% fee (about average for balance transfers) will cost £12, which is the more than the interest if for 2 months worth.

OP you need to do some calculations if you apply for a 0% card, see if it's worth doing it, or if you can pay it off quicker and pay less interest. It's not the end of the world paying a bit of interest.

j0nnyboy69

Speaking to Natwest will help. Or as above take a credit card. Or you could take a loan from a friend/parent - just to help you out for a couple of months.