overdraft ....situation

vaporate

Delete the whole OD when possible. That way you cant get back into debt. However, if your short, you will have to get by.

Credit score builder? try credit cards where its interest free for so many months.

gfplux

I think this has already been said but is worth repeating.

Spend a little less than you earn each month.

Just like they did in the olden days!!


Good Luck

vaporate

You have to remember that its the bank at fault too. They USED to, in the old days, only charge a fee as a penalty, now they charge at will.

it takes 2 to tango. Both parties are at fault.

palula

true because at the moment, the interest is about 16 pounds a month and the charge can be 28 a month if ive accidentally gone over it. spending a little less a month is the key hence, why i'll definitely phone them every pay day and reduce it, that way like you say, i cant spend what i dont have.

main concern is the bank removing the od and taking my wages, hence why im now thinking i;ll get moving my main salary and just move money back for 2 days a month to old account, pay off £50 or more and then move it out again, so it looks active. hassle but might work.

jambosans

palula wrote: »

true because at the moment, the interest is about 16 pounds a month and the charge can be 28 a month if ive accidentally gone over it. spending a little less a month is the key hence, why i'll definitely phone them every pay day and reduce it, that way like you say, i cant spend what i dont have.

Surely, instead of completely removing the overdraft, leaving a small "buffer" overdraft on the account will avoid larger charges. Remember, if you set your limit at £0, anything below that is unarranged borrowing, and may be subject to greater charges. It makes much more sense to leave a small overdraft that can be repaid in full each month, to avoid paying £28 a month. This would obviously require some self discipline to avoid getting into the same indebted position as you are now.

palula

ok i will do that, maybe get it down to about a couple of hundred and try to be discliplined.

will banks be ok with me just moving main money out? if interest is charged on a daily basis then i guess i pay more, not having my wages paid in ,ie will be in overdraft more days than not for a while. but in long term, cos of all the banks wanting their money, i guess getting my wages out is better.