Help needed with OD And loan repayment

Glynn1

Hi guys
I was with natwest for 10 years but ended up in my overdraft . I got a loan off natwest to pay off the overdraft but then moved to the Halifax bank .
I forgot to set up a dd to pay off the natwest Loan and I'm now in my natwest OD by £2600 . Natwest are now sending me letters .

Is it a good idea to get a new loan to pay the existing loan off plus the overdraft ?
All help appreciated

Thanks
Glynn

patman99

You need to review your finances & perhaps do a SoA to see how much you have surplus each month.
When you know this, you can start transferring money across to the Natwest account in order to clear the o/d. If can avoid taking a loan, then you will save on interest payments on a loan.
If you set yourself a limit of 50% of any monthly surplus, then as your income rises, your o/d will decrease.

Btw if you post your SoA on here then we can advise you of any things that can be reduced.

Tixy

Hi

Have natwest actually recalled your overdraft? if so then this may well be recorded on your credit file and getting another loan to consolidate both the existing loan and overdraft may not be an option.
What options you have will depend on how much you can afford to pay a month towards these debts. As patman says it would be worth working out a detailed budget (statement of affairs) to see how much you can afford to start paying.

How much do you owe on the existing loan? and what is the APR on that?
How much are natwest charging for the overdraft?
Do you have any other debts?