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    • Naomim
    • By Naomim 15th Jan 20, 12:05 PM
    • 1,338Posts
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    Naomim
    Is there a Bank Overdraft calculator?
    • #1
    • 15th Jan 20, 12:05 PM
    Is there a Bank Overdraft calculator? 15th Jan 20 at 12:05 PM
    hi All,

    I'm usually found on the DFW boards of this site. I have a 4650 arranged overdraft that MrM and I are constantly in. Had my LBM in November and thanks to MrM's Christmas bonus we have managed to reduce it to around 3300.00. We are with Natwest who will be changing their OD interest to 39.9%.

    We currently pay around 50+ interest. Is there a calculator where I can work out how much we will be paying going forward?

    I am working on zero based budgeting and my 6 month forecast shows another 1000 being knocked off by June 2020. However, Martin's latest email suggests doing a balance transfer if you can, to a 0% credit card which I may be in a position to do by June (the offers dried up this last year due to only paying minimums) this has now been changed to set amounts.

    Thanks in advance!

    Naomim
    Credit Cards 33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
Page 1
    • colsten
    • By colsten 15th Jan 20, 12:31 PM
    • 11,688 Posts
    • 11,046 Thanks
    colsten
    • #2
    • 15th Jan 20, 12:31 PM
    • #2
    • 15th Jan 20, 12:31 PM
    You could use the Natwest overdraft calculator, which will give you an approximate result. Although they may not have updated their calculator yet for the new rates, so a simple loan calculator might give you a better idea.

    The precise result will depend on your overdrawn balance at the end of each day. So you would have to calculate the interest every time your O/D balance changes.

    I am sure you know that getting rid of the overdraft should be your top priority. Not least because overdrafts are one of the most expensive ways of borrowing money, but can also be recalled without notice.
    Last edited by colsten; 15-01-2020 at 12:43 PM.
    • Willing2Learn
    • By Willing2Learn 15th Jan 20, 12:32 PM
    • 5,199 Posts
    • 4,840 Thanks
    Willing2Learn
    • #3
    • 15th Jan 20, 12:32 PM
    • #3
    • 15th Jan 20, 12:32 PM
    I don't think there is any calculator. Basically for every 1,000 you are overdrawn @40% APR, then you would be charged approximately 400/annum in interest or (33/month). It is eye-watering.

    Math is not my strongest suit. But I think my calculations are correct.

    Ideally, you want to be paying off that overdraft as a priority over other unsecured debts (as the facility can be withdrawn without notice).
    Last edited by Willing2Learn; 15-01-2020 at 12:40 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Naomim
    • By Naomim 15th Jan 20, 12:54 PM
    • 1,338 Posts
    • 3,260 Thanks
    Naomim
    • #4
    • 15th Jan 20, 12:54 PM
    • #4
    • 15th Jan 20, 12:54 PM
    Thank you both.

    It is a priority but as I'm also getting persistent debt letters from the credit cards, I'm trying to overpay (a little) to them each month and have started budgeting properly. A fair chunk of my cc debt was from doing money transfers to clear the OD then not actually budgeting so it never made any difference except increase the debt.

    Onwards and upwards.

    Naomim
    Credit Cards 33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
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