Real time overdraft charges


#1

I am a bit boring about working out my finances and interest charges and such, and I was thinking about the “fairer overdraft page” and the slider on how much an overdraft of 30 days of £5k would cost, and the fact is, no one has ever had an overdraft of a set amount for a full month, like you would a loan or credit card.
I’d like to now whether an overdraft of £5k would be cheaper than a loan, which could be half the interest. The reason being, if someone gets paid say £2k at the beginning of the month then has payments going out amounting to say £1k at the same time, then over the course of the month, the other £1k slowly dwindles to about £100. Then they have not borrowed £5k at 15% EAR for a month.
I know I’m a bit pedantic and boring but someone somewhere must have written a formulae or worksheet to work this out.


#2

There are lots of online calculators that can tell you exactly how much your overdraft charge will be based on the actual number of days.

http://www.candidmoney.com/calculators/overdraft-calculator

You would obviously have to compare based on the individual loan site, as there isn’t any decent ones that compare lots of loans and overdraft. I suppose probably because rates can change.


#3

Those just work out the charge based on being overdrawn for a set amount over a set time. Real overdrafts don’t work like that. you’re overdraft starts low and finishes high at the end of the month, before pay day. I want to know what my projected charge would be, from say figures supplied from an old statement, at the end of the month. Basically worked out a daily basis


#4

It’s OK now I found a spreadsheet that works it out Thanks :+1:


#5

I’d be interested to hear what you discover.