Urgent help please - overdraft v loans

jocypri

I'm coming to the end of a 3 year graduate overdraft facility and the rate will go from £500 free overdraft to a general charged overdraft of around 18/19%. I am currently £1000 overdrawn and want to know what the best options are. The bank has offered a Graduate loan at around 8.4% for the £1000 with fixed payments but i want to know if there are any better options out there that anyone would recommend?

Dill

I guess it depends on how quickly you are able to repay the £1000. I think there are 0% credit cards available for a fixed period (one year, I think?) If you are going to need longer than that then I'd say 8.4% is a good rate, as most banks seem to charge around 18/19% for smaller loans.

Hopefully someone with better knowledge than me will be along soon to advise you more :-)

jocypri

It says 8.5% variable but it is a graduate loan only up to £5,000 so it is probable it would be a little higher than the 8.5% for just £1000

CLAPTON

presumably the OD fluctuates as your salary goes in. whats the average value ?
how long before you can pay it off?

jocypri

I think i could pay it off in a year bit by bit but i'd ideally like some way of being able to do that in various payment amounts rather than set monthly installments. I know this tends to make it more difficult though and also tends to put loan rates up.

I'm not sure how to work out the average value but my salary each month brings the overdraft back into the black by about £30