AER on overdraft. monthly interest calculation? - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HotUKDeals, you accept our cookie and privacy policy.
Get the HotUKDeals app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

AER on overdraft. monthly interest calculation?

£0.00 @
I have £1500 agreed overdraft at 19.9% AER. If i were to to use the £1500 every month, how much interest will i pay every month? Thanks in advance. Read More
earthlling Avatar
9m, 3w agoPosted 9 months, 3 weeks ago
I have £1500 agreed overdraft at 19.9% AER. If i were to to use the £1500 every month, how much interest will i pay every month?

Thanks in advance.
earthlling Avatar
9m, 3w agoPosted 9 months, 3 weeks ago
Options

All Responses

(11) Jump to unreadPost an answer
Responses/page:
#1
Debit interest is likely to accrue on a daily basis, therefore it is impossible to calculate as the balance is likely to be different each day as transactions occur.

Unless you are saying that the balance will be £1500 overdrawn for every day of the month
#2
let's say it was exactly £1500 for every day of the month?
#3
It would be roughly £300 a year ,or £25 a month . If you were £1500 overdrawn all month .

Edited By: rogparki on Aug 04, 2016 22:34
#4
£1500 x 19.9% / 365 x 31 = £25.35
Based on a static balance and a 31 day charging period.
#5
Thanks guys.
#6
I have a mortgage balance of £30600 @1.49% (0.99 above Base rate). if I increase my monthly payments to £1295 I can pay off my mortgage in just 2 years.
So for £20-£25 a month it's not a bad deal.
#7
You need to look at you calculations again borrowing @ 19.9% to pay off a debt @ 1.49% is not going to end well.
#8
earthlling
I have a mortgage balance of £30600 @1.49% (0.99 above Base rate). if I increase my monthly payments to £1295 I can pay off my mortgage in just 2 years.
So for £20-£25 a month it's not a bad deal.
No no no no no . Do not know what you are basing your figures on but that will never work . You will pay your mortgage off and replace it with a mountain of unsecured debt at ten times the rate of interest . What are you increasing your payments from ? Don't forget it isn't just the interest , you still have to repay the capital

Edited By: psychobitchfromhell on Aug 05, 2016 01:11
#9
psychobitchfromhell
earthlling
I have a mortgage balance of £30600 @1.49% (0.99 above Base rate). if I increase my monthly payments to £1295 I can pay off my mortgage in just 2 years.
So for £20-£25 a month it's not a bad deal.
No no no no no . Do not know what you are basing your figures on but that will never work . You will pay your mortgage off and replace it with a mountain of unsecured debt at ten times the rate of interest . What are you increasing your payments from ? Don't forget it isn't just the interest , you still have to repay the capital
calm down driver
#10
tamboss
psychobitchfromhell
earthlling
I have a mortgage balance of £30600 @1.49% (0.99 above Base rate). if I increase my monthly payments to £1295 I can pay off my mortgage in just 2 years.
So for £20-£25 a month it's not a bad deal.
No no no no no . Do not know what you are basing your figures on but that will never work . You will pay your mortgage off and replace it with a mountain of unsecured debt at ten times the rate of interest . What are you increasing your payments from ? Don't forget it isn't just the interest , you still have to repay the capital
calm down driver
I've worked in banking for far too long . I've seen people run up unsecured debt of hundreds of thousands of pounds just by taking out interest free credit cards and not paying them off . It is far easier to get into debt than get out of it . Op needs to realise that they have to pay off the £1500 overdraft from the previous month before they so much as buy a loaf of bread the following month . It may sound logical to you but sometimes people do not think logically . Paying your mortgage off early is great but not if you are borrowing from elsewhere to do it
#11
earthlling
Thanks guys.
No, No, No , The figures given were for One £1500 overdraft . You are talking about an increasing overdraft of £1500 a month oO . ie month 1 £1500 , month2 £3000 etc month 24 would be £36000 and at 19.99% APR would cost you about £720 per month in interest and an increasing debt of £36000 . Don't even think about it oO (the bank wouldn't let you anyway) . £1500 would be your max overdraft not £36000 !


Edited By: rogparki on Aug 05, 2016 11:20

Post an Answer

You don't need an account to leave a response. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!