When did it become normal to have an overdraft

LeeSouthEast

I have an overdraft on my account equal to about 3/4 of my monthly salary. Before my debt mission, I would routinely be bouncing around the bottom of it. Purely living beyond my means.

Now, while I still have it (it's a handy emergency fund), I haven't been anywhere near it for 10 months.

“Man must cease attributing his problems to his environment, and learn again to exercise his will – his personal responsibility.”

-Albert Schweitzer

agsnu

oxenryd wrote: »

No they wouldn't !! this is exactly the attitude that is being described in earlier posts - "You have to use/have an overdraft these days"

I'm sorry, but you are massively generalising and assuming that everybody else's circumstances are similar to your own experiences. This is not necessarily the case.

How old are you? If you're over 30 then you're not qualified to comment unless you have kids who have been through it recently.

Where did you go to university? Workload varies by institution - where I went had recommendations that students didn't work more than some pitiful amount per week because they didn't think it was compatible with achieving to the best of your ability - and they would have been right. The cost of living also varies significantly by area.

How much Government support did you get? Plenty of children from lower middle-class families aren't entitled to the full support, yet their parents have other commitments in the form of mortgages, siblings, etc and can't afford to make up the difference.

etc etc.

vet8

When I was a student I struggled a bit and I remember going to the bank and asking the manager very politely for a £10 overdraft. I got it - just!

How things have changed! I agree that people borrow too much, but I also agree that lots of people could not afford to live even the most basic existence without debt. My OH lost his job several years ago and even though he searched desperately for a new job he was forced to claim JSA for a while. He had the most incredible trouble getting anything out of the miserable B*****ds at the dole office. We needed money to pay the mortgage and bills etc., but they seemed determined to give him nothing.

Having experienced that I know that if you get into trouble it is very hard to get out. People sneer at those in debt, but it is not always that straightforward to sort out your life at once, it might takes years, years when an overdraft and even Cc debt is invaluable.

kriss_boy

Overdrafts are cheap short term loans. Simple as that really.

oxenryd

agsnu wrote: »

I'm sorry, but you are massively generalising and assuming that everybody else's circumstances are similar to your own experiences. This is not necessarily the case.

How old are you? If you're over 30 then you're not qualified to comment unless you have kids who have been through it recently.

Where did you go to university? Workload varies by institution - where I went had recommendations that students didn't work more than some pitiful amount per week because they didn't think it was compatible with achieving to the best of your ability - and they would have been right. The cost of living also varies significantly by area.

How much Government support did you get? Plenty of children from lower middle-class families aren't entitled to the full support, yet their parents have other commitments in the form of mortgages, siblings, etc and can't afford to make up the difference.

etc etc.

agsnu, I was simply giving my opinion. I am very aware that people have different circumstances. And also anyone [re: being "Qualified" to comment] , regardless of their age, can comment on anything they wish to comment on. (I'm under 30 if you really want to know)

System

I would never have had an overdraft if i hadn't been a student. Even with a loan and working part time there were times when that overdraft saved me from dire straits.

This coming from someone who's over £1500 into said overdraft More annoying is the fact it was £2000 and by working i'd paid most of it off..then i was ill..lost my job and i don't seem to be able to escape it.

simongregson

I have always had an overdraft. I don't use it on a day to day basis, but it has meant that I have never paid any bank charges.

Of course it isn't necessary, but now that direct debits are a much more common way of paying, it is quite important to have a buffer because mistakes and oversights do happen even if you check things carefully.

However, some people seem to live on them! I get particularly annoyed by people who think it is OK to have a large used overdraft yet have a go at me for paying for everything by credit card (I pay it off monthly and get cashback), they have even said 'it's OK becuase it's a debit card'!

Paul_Herring

kriss_boy wrote: »

Overdrafts are cheap short term loans. Simple as that really.

I take it you're not with Halifax then?

agsnu

oxenryd wrote: »

agsnu, I was simply giving my opinion. I am very aware that people have different circumstances. And also anyone [re: being "Qualified" to comment] , regardless of their age, can comment on anything they wish to comment on. (I'm under 30 if you really want to know)

Indeed, there's nothing stopping anyone commenting on anything. But when people have no idea what they're talking about, it's perfectly legitimate to call them out on it and point out that they're not really qualified to comment because their perspective is skewed.

Rosemary7391

I have an overdraft on my student account, as my rent is payable termly in advance, yet I wouldn't get my student loan until after term started - so its just there to cover the few days between paying rent and receiving my loan. I shouldn't need it for day to day living as long as I get the temporary work I hope to over the holidays.