A&L 0% Overdraft Finishing in 2 Months!

Kayleighpea

Hi All,

I'm just trying to plan ahead a bit as my A&L 0% Overdraft is up at the end of July and just wanted some advice!

I am always in my overdraft and keeping this account would mean they would charge me 50p a day for using the overdraft, up to a maximum of £5 a month (as I understand the T&C's!).

I only earn £15,750 so don't earn enough to get the First Direct account and I already have a Student Account with Halifax which has the overdraft maxed out.

So what I want your opinions on is whether there is another account available to me or whether I would just be better off sticking with Alliance & Leicester and coughing up the extra £5 a month??

Thanks all!

Kayleighpea

noelphobic

I think that depends to some extent on how much your overdraft with them is. Mine is £2500, although I have recently put myself back in credit - don't know how long I will be able to keep it that way though!

Looking at your signature, it looks as though you only have an overdraft facility of £200. If that's the case then it is possible you would be better off somewhere that charges low interest on overdrawn balances, rather than a set fee.

opinions4u

Kayleighpea wrote: »

I'm just trying to plan ahead a bit as my A&L 0% Overdraft is up at the end of July

Planning is everything when it comes to money.

I am always in my overdraft

What planning are you doing not to be in overdraft? How would you cope if your provider withdrew your overdraft facility? Overdrafts are repayable on demand. It is a dangerous game relying on them for longer term borrowing.

and keeping this account would mean they would charge me 50p a day for using the overdraft, up to a maximum of £5 a month (as I understand the T&C's!).

To understand if this is good value or not we need to clarify the amount you typically owe at any given time. If it's £200 then a fiver is expensive. If it's £1000 then a fiver is cheap.

I only earn £15,750 so don't earn enough to get the First Direct account

But you do earn, and need to use part of what you earn to reduce what you owe.

and I already have a Student Account with Halifax which has the overdraft maxed out.

This is a potential time bomb as well. When does this become interest charging?

So what I want your opinions on is whether there is another account available to me or whether I would just be better off sticking with Alliance & Leicester and coughing up the extra £5 a month??

Depends on how much you owe.

If you can remove your reliance on the A&L overdraft (by spending less in the next couple of months and operating the account in credit) you will never need to pay your fiver a month. You can then pay extra towards your MBNA credit card and this will help reduce the interest charges that they levy.

I'm just a bit concerned that you have a mindset that you should live in overdraft. If you can change this and work towards never being overdrawn or owing on credit cards etc you will find life becomes easier from a financial perspective.

Good luck.

Fire_Fox

Kayleighpea wrote: »

Hi All,

I'm just trying to plan ahead a bit as my A&L 0% Overdraft is up at the end of July and just wanted some advice!

I am always in my overdraft and keeping this account would mean they would charge me 50p a day for using the overdraft, up to a maximum of £5 a month (as I understand the T&C's!).

I only earn £15,750 so don't earn enough to get the First Direct account and I already have a Student Account with Halifax which has the overdraft maxed out.

So what I want your opinions on is whether there is another account available to me or whether I would just be better off sticking with Alliance & Leicester and coughing up the extra £5 a month??

Thanks all!

Kayleighpea

£16k is plenty to live on, especially so if you are living with your Mum (I read through some of your earlier posts). Why don't you complete a Statement of Affairs - link on sticky on DFW board - and post it up on the Debt-Free Wannabe board? Also read through the 'live on £4k for a year' thread for inspiration, remembering this is for an entire family!!