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£5000 overdraft
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# 1
fozmcfc
Old 01-05-2010, 10:14 PM
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Default £5000 overdraft

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
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# 2
vaporate
Old 01-05-2010, 10:17 PM
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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.
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# 3
Bloomberg
Old 02-05-2010, 1:00 AM
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Default Overdraft

Quote:
Originally Posted by fozmcfc View Post
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
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.
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# 4
mclaren32
Old 02-05-2010, 7:56 AM
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Default

Quote:
Originally Posted by fozmcfc View Post
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
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.

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# 5
simax
Old 02-05-2010, 8:29 AM
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Default

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
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# 6
kaisersoze
Old 02-05-2010, 12:55 PM
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Quote:
Originally Posted by simax View Post
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....
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?
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# 7
iereboy
Old 02-05-2010, 4:42 PM
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Yeah is that a natwest thing?

With Lloyds I can reduce my overdraft anytime I like and no credit check is involved at all!
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# 8
stclair
Old 02-05-2010, 4:46 PM
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Quote:
Originally Posted by simax View Post
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 totally agree so you need to be sure your equifax and experian credit reports are okay before making any decisions OP.
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# 9
fozmcfc
Old 03-05-2010, 10:57 AM
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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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