First Arranged Overdraft

bntft

Hi all,
I'm currently in a situation where I believe my best option would be to take out an arranged overdraft with natwest.

I need to borrow £100 from for 25 days until I am paid. Using the natwest overdraft calculator, when using £100 of my arranged £100 overdraft, it is showing me that I would be charged a £6 monthly fee and £1.25 interest for 25 days. It then displays a total cost of £7.25
To me this reads that once my account was in a positive state when I am paid. At some point in the month I would be charged £7.25 for using my overdraft but not going over. To me this almost sounds too good to be true and I feel it would be a £6 fee + 25 days worth of charges at £1.25.

If anyone could give me some advice as I am in desperate need in sorting this out but I dont want to sign myself up for even more debt. I'd also like to add that I dont intend to use this again and i would just cancel it once I had paid the money back once I have been paid.

Happy to add anything I may have missed out.

Thanks

eskbanker

Your comment that "I dont want to sign myself up for even more debt" suggests that you already have debts, which may compromise their willingness to accept your overdraft request, but a cost of 7.25% for less than a month doesn't sound like spectacular 'too good to be true' borrowing to me! Having said that, if you have no other access to funds then it's probably worth going for....

bntft

Maybe I phrased that poorly, I am no debt at all and this is just a one off. So the charge of £7.25 is a realistic and I am just not over thinking it?

Thanks

eskbanker

bntft wrote: »

Maybe I phrased that poorly, I am no debt at all and this is just a one off. So the charge of £7.25 is a realistic and I am just not over thinking it?

It sounds realistic to me, but if you don't have £100 headroom with 25 days to go until payday (and there are many in that situation to be fair) then you might wish to consider retaining the overdraft facility rather than cancelling it afterwards, even if you currently think you wouldn't need to use it....