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  • FIRST POST
    • fozmcfc
    • By fozmcfc 1st May 10, 10:14 PM
    • 2,918Posts
    • 2,117Thanks
    fozmcfc
    5000 overdraft
    • #1
    • 1st May 10, 10:14 PM
    5000 overdraft 1st May 10 at 10:14 PM
    Currently my OD with Natwest stands at 5000, in the past 5 or 6 years, I have been into my overdraft by 7 once in January 2009.

    I'm thinking the OD amount is ridiculously high considering the above and the fact that I earn about 1900 a month on average.

    I guess what I'm really asking is 1/ Is it really high considering my earnings and 2/ should I ask them to reduce it, or is there no real harm in having an OD of this amount.

    Thanks
Page 1
  • vaporate
    • #2
    • 1st May 10, 10:17 PM
    • #2
    • 1st May 10, 10:17 PM
    Just my opinion:

    Reduce it. Why?

    1. less risk of losing large amounts of money to fraud
    2. Less likely to be tempted to get into a spiral of debt.
    Hi, weve had to remove your signature. If youre not sure why please read the forum rules or email the forum team if youre still unsure - MSE ForumTeam
  • Bloomberg
    • #3
    • 2nd May 10, 1:00 AM
    Overdraft
    • #3
    • 2nd May 10, 1:00 AM
    Currently my OD with Natwest stands at 5000, in the past 5 or 6 years, I have been into my overdraft by 7 once in January 2009.

    I'm thinking the OD amount is ridiculously high considering the above and the fact that I earn about 1900 a month on average.

    I guess what I'm really asking is 1/ Is it really high considering my earnings and 2/ should I ask them to reduce it, or is there no real harm in having an OD of this amount.

    Thanks
    Originally posted by fozmcfc
    Considering your monthly income this does seem like a very generous overdraft limit. Like Vaporate says if ever your card was cloned a fraudster would have access to all that extra cash. From what you say a 200 limit would suffice.
    Money talks, are you listening?
  • mclaren32
    • #4
    • 2nd May 10, 7:56 AM
    • #4
    • 2nd May 10, 7:56 AM
    Currently my OD with Natwest stands at 5000, in the past 5 or 6 years, I have been into my overdraft by 7 once in January 2009.

    I'm thinking the OD amount is ridiculously high considering the above and the fact that I earn about 1900 a month on average.

    I guess what I'm really asking is 1/ Is it really high considering my earnings and 2/ should I ask them to reduce it, or is there no real harm in having an OD of this amount.

    Thanks
    Originally posted by fozmcfc
    You are in a similar position to myself and I like the security of having access to funds at the drop of a hat even though I never go over the interest free part of my o/d, 250.

    If you are sensible with money and monitor your account on a regular basis I see no problem with having a large facility available.

  • simax
    • #5
    • 2nd May 10, 8:29 AM
    • #5
    • 2nd May 10, 8:29 AM
    Also, remember, you cannot just lower an existing limit. They'd cancel your current O/D and would re-credit check you for the new proposed amount.

    If your credit rating has changed, you may find you lose the facility altogether..... just a thought....
    I say it as it is - you may not like that but what would you prefer? A string of false platitudes that are no help whatsoever just to make you feel better? If my advice has helped, please press the Thanks button over here ----------------V. Cheers
  • kaisersoze
    • #6
    • 2nd May 10, 12:55 PM
    • #6
    • 2nd May 10, 12:55 PM
    Also, remember, you cannot just lower an existing limit. They'd cancel your current O/D and would re-credit check you for the new proposed amount.

    If your credit rating has changed, you may find you lose the facility altogether..... just a thought....
    Originally posted by simax
    Is this a Natwest thing? I have reduced an overdraft with Halifax online, so long as the account is in credit i can reduce it to whatever i like instantly.

    Why would they credit check you to reduce an overdraft?
  • iereboy
    • #7
    • 2nd May 10, 4:42 PM
    • #7
    • 2nd May 10, 4:42 PM
    Yeah is that a natwest thing?

    With Lloyds I can reduce my overdraft anytime I like and no credit check is involved at all!
  • stclair
    • #8
    • 2nd May 10, 4:46 PM
    • #8
    • 2nd May 10, 4:46 PM
    Also, remember, you cannot just lower an existing limit. They'd cancel your current O/D and would re-credit check you for the new proposed amount.

    If your credit rating has changed, you may find you lose the facility altogether..... just a thought....
    Originally posted by simax
    I totally agree so you need to be sure your equifax and experian credit reports are okay before making any decisions OP.
    I Work For the RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
    • fozmcfc
    • By fozmcfc 3rd May 10, 10:57 AM
    • 2,918 Posts
    • 2,117 Thanks
    fozmcfc
    • #9
    • 3rd May 10, 10:57 AM
    • #9
    • 3rd May 10, 10:57 AM
    Thanks for the advice.

    My credit status is at least good, as I've been able to get 3 0% credit cards over the past 12 months.

    My credit reports show everything to be paid/clear/up to date etc...etc...

    Up until January 2009, I was bad with money, even though I never failed to pay the required minimum at least to all my debts, I still had no savings, but decided enough is enough and to sort myself out.

    Had a great year of saving and shifting debt around to cheaper debt. As per my signature I will clear the 2 credit card balances I have and one of my loans by September.

    Not wishing to tempt fate, but unless I lose my job, I don't foresee myself ever using the O/D and even then, I wouldn't want to go anywhere near 5000.
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