Overdraft question

oasis7777

I have a £750 overdraft with natwest , and i want to get out of it and get rid of it , i hate it!

what i need to know is , can i gradually lower the overdraft ?

eg: when i get paid , i could afford to take £100 off it every 2 weeks , is it possible to ring them up every 2 weeks and lower it by £100 , ie lower it to £650 , then after 2 weeks lower it to £550 and so on , until its finnaly gone ?.

This way would be easier than me saving £750 and clearing it in one go , ive tried to save it but end up using it! i need to graddually lower it every 2 weeks .

I just need to know if the banks accept this if i ring them , does anyone have a answer to this ?

Many thanks

Lokolo

Yes you can do this however:

- Not sure if Natwest charge for changing overdraft
- If you then go over this new limit each time it could cost you a fortune in charges

oasis7777

I would never go over the new limit , i just need to gradually get it down , what should i say when i ring them ? , i hope they will do it!

Lokolo

Just do it weekly. Ring them today, reduce by £100. Ring next month, reduce by £100. Just keep doing it.

However you might want to get ideas from some of the others before going ahead!

oasis7777

Lokolo wrote: »

However you might want to get ideas from some of the others before going ahead!

How come? do they ask you all sorts of questions , or is this not a good idea ?

Lokolo

I'm not 100% on Natwests overdrafts procedures, there are a few on here who would be better to make sure its all ok to do this without having charges bombed at you.

oasis7777

allright , thanks for your help , appreaciate it .

i'll have a look around or maybe someone can have some more answers here!

YorkshireBoy

You need to make the distinction between an overdraft and an overdraft facility.

Maybe your problem is willpower?

I'd leave the facility in place and resolve not to use it...unless it was a dire emergency. The added benefit is, as Lokolo has already highlighted, you avoid bank charges should you mess up one month.

opinions4u

Easy to say from here, but this is all about teaching yourself financial discipline.

Just because you have been given a "limit" by your bank doesn't mean that it's compulsory to use it.

The solution is to spend less (or earn more and spend the same).

Regardless of what Nat West tell you the limit is, it's up to you to decide how much of that limit you use at any point in time. Do as you suggest, aim for £650, then £550, then £450 etc.

I don't know the answer to your question, but there are potential issues.

- they might carry out a credit search each time
- they might charge a fee each time
- they might insist on reducing it to a lower amount than you can currently work with

Take control of your finances and set your own personal limits, regardless of what the bank will allow you to do.

oasis7777

i think your right!

it would be better to get rid of it in one go and i would prefer that , but its not easy!

Lokolo

Have you got a budget planner? Very useful thing to have.