pay off natwest credit card or overdraft first

graduate2012

Hi ,

I have a gradaute account with Natwest and have an overdraft of £2,000, £1,000 of which will be charged interest at some point in July, I was told it would be 16%, or 16. something.
I also have a student credit card with them which is at a rate of 18.9% on a balance of £500.

I use the current account as my main account and my JSA goes in there and I pay all my bills out of the account.


Should I pay off the credit card first or the overdraft? I have read before that banks can take overdrafts off people easier than they can with credit cards, or something. I'm sorry if I am a little confused, very stressed at the moment
Any help would be much appreciated

Thanks
xx

oldsmokie

Overdrafts are repayable on demand. Credit cards will normally only be cancelled if you default although the bank can reduce your credit limit.

Based on your numbers, you would be better to repay the credit card before theoverdraft provided that you don't have any big items of expenditure coming up that need to be funded from your bank and you wouldn't have enough available overdraft to pay for it.

graduate2012

Thank you very much for your advice , really appreciate it