When did it become normal to have an overdraft

Alikay

I had an overdraft from the early 80's when I bought my first house on my own, then married DH (who was previously debt-free ). We then moved south, had a bigger mortgage and a bigger overdraft. During the breeding years of the late 80's early 90's our overdraft remained around £400 by the end of each month. This continued right through to about 5 years ago along with around £5K on credit cards, At that point I got fed up with it - it never became unmaneagable at all, but was a pain having to consider repayments first every payday.

We reined it in and have now been debt free (bar the mortgage which we're overpaying now anyway) for a couple of years now :j

oxenryd

Just found this thread and it's weird as we were discussing this with friends this morning.

My opinion is that people in this country seem to think they are entitled to everything, regardless of means or what you have put/not put into society.

Also I may be wrong, but someone has mentionned mortgages, I do think (but could be wrong) that the difference between salaries and cost of property is widening - as in even a couple with a 10-15-20% deposit and a decent salary still cannot afford to buy a property.

I personnaly have an overdraft as a safety net, I never use it, but you know what banks are like, mistakes being made all the time (direct debits/standing orders/fraudulent card payments.)

opinions4u

The past 12 years in particular has seen a Government that has chosen to borrow for day to day expenditure.

That same Government has built its whole economic policy on a consumption society (more VAT for them to waste), allowing house prices to balloon to drive Stamp Duty and IHT income for themselves.

Is it any wonder that some of the people thought living in debt was a good idea? It's how the whole country has been run.

GSXRCarlos

i have a £100 overdraft on the account that my DDs come out of, i won't increase it, nor will i take out an OD on any other account i have

But the more the banks have offered 'free money' the more the greedy amoungst us have taken it, and then wondered how/why we can't afford to pay it all back

bendix

I personally think the ready availability of overdrafts and credit has been the single most harmful influence on modern british society over the last 20-30 years. It has generated a 'I want it now' culture which has in turn morphed into a 'because I'm worth it' ethos which is morally repugnant and very very dangerous.

vaporate

Well, answer this (thank god I'm done with it unless I do it part time while working)

Where would university students be without overdrafts?

(Forget student loans as they never get paid back, more graduate tax than a 'loan').

GW65

I used to work with a guy (nearly 20 years ago) who was fairly well paid, had savings, but always lived up to his overdraft limit. When I asked him why, it was to "give him some financial discipline"!?. In other words, when he hit the limit he couldn't spend any more... I tried to explain that he could just pretend a £0 balance was his limit, but it went right over his head.

Hadrian

bendix wrote: »

I personally think the ready availability of overdrafts and credit has been the single most harmful influence on modern british society over the last 20-30 years. It has generated a 'I want it now' culture which has in turn morphed into a 'because I'm worth it' ethos which is morally repugnant and very very dangerous.

Speaking as one who has had a bank account for over 45 years I couldn't agree more. :A

Lokolo

vaporate wrote: »

Well, answer this (thank god I'm done with it unless I do it part time while working)

Where would university students be without overdrafts?

(Forget student loans as they never get paid back, more graduate tax than a 'loan').

A lot better of as they would have to learn the value of money.

Sneezy

I have a fifty pound overdraft as a "just in case" i have used it once since i asked for it four years ago and that was before i was registered for internet banking and i miscalculated something by about 20p!

I refuse to raise or live in it as i want the money i spend each month to be my own! (with the exception of my credit card which is being paid off and is only what it is because i have just bought my glasses and booked a weekend away and wanted the protection from it as a just in case).