Whats your overdraft limit? and how much do you credit your account with?

bendix

benood wrote: »

Very good, but does that mean possession of an overdraft is the secret to eternal youth?

No, but close. It's the well-trodden path to perpetual irresponsibility.

mel19632

£5k with Barclays - not used though as its very expensive!

benood

bendix wrote: »

No, but close. It's the well-trodden path to perpetual irresponsibility.

Perhaps - not having an overdraft when you are young teaches the necessary financial discpline to profitably use an overdraft when you are older - the key being to get value from it, of course.

bendix

There is no value to personal overdrafts. It is debt. It is spending money you don't have.

I know that's a strange concept these days, but - hey - I'm old fashioned.

gettingthere28

£50 (Never Used) with NatWest

Credit with £2600 month

oldwiring

bendix wrote: »

I have no overdraft. I don't want to use other people's money thanks. I prefer to spend less than I earn. It's the grown up way.

That's too simplistic a statement to really be serious, surely? OK if folk use an overdraft to continually fund a life they cannot afford is one thing, but that is not the purpose of an overdraft. Its purpose is to deal with the unexpected, like currently dealys in funds through the mail strikes.

As to using other people's money, they know there money is used and are paid either through interest received or lower bank charges, and the source of those are the amounts you pay in interest.

Limit £800; Average in monthly £1650

BTW see my profile.

olly300

bendix wrote: »

No, but close. It's the well-trodden path to perpetual irresponsibility.

No it's not. You can be quite dense sometimes.

The point of an overdraft is to prevent direct debits and the like bouncing due to your employer screwing up paying your wages. It's actually happened to me.

I have various bank accounts with various overdrafts ranging from £3000 - £10.

1sue23

£8000 overdraft with Yorkshire bank never used .
£5600 credit .

furndire

Small overdrafts on a couple of accounts, but never had to use them.

Not having an overdraft, and a direct debit coming out early got my daughter into the mire. In four weeks she racked up about £300 of bank charges (which she reclaimed) so get an overdraft, but don't use it. Its a safety net.

YorkshireBoy

1sue23 wrote: »

£8000 overdraft with Yorkshire bank never used .
£5600 credit .

Also with Yorkshire Bank, except I have 2 accounts there...

Account 1
£5K unused facility
£300 monthly credit

Account 2
£3K unused facility
£0 monthly credit

And with A&L...

£10K used facility*
£500 monthly credit


* £9,994 of it sat in Halifax making 5% gross fixed until November (for which A&L charge me £5 per month)