Bank charges are fair!

vaporate

glider3560 wrote: »

I'm a student. I don't earn much. My mum doesn't work. My dad doesn't earn much. I get by. I only use my overdraft to my advantage (i.e. putting it in a savings account). I've never had a bank charge. I budget well and live by my means, which means I can't afford to go partying every night like some students but it does mean that I'll graduate without the worry of paying back an overdraft.

Do you get parental help financially?

I'm talking about the students who get nothing.

(except delayed student loans)

No doubt these stduents affected will be using their overdrafts right now.

jambosans

vaporate wrote: »

I think people are missing the point here. Banks screw you as soon as you are in your overdraft and can only afford to pay it back over a given time, then turn nasty.

The bank will only "turn nasty" if you mis-manage the borrowing e.g. outgoings are greater than incomings.

The main issue with overdrafts (IMO) is the customer's understanding of the borrowing, i.e. short term (reviewed annually) and repayable on demand. If you've always had an overdraft, then it would be quite natural to assume that it's a permanent fixture.

vaporate wrote: »

Example, student uses overdraft. Student graduates. Student takes ages to find a job because the UK job marked is fooked, no income. Bank screws graduate.

Most banks offer graduate accounts with an additional few years interest free on their overdrafts. Some banks will even convert their overdraft into an interest free loan (e.g. RBS Graduate Royalties).

glider3560

vaporate wrote: »

Do you get parental help financially?

I'm talking about the students who get nothing.

(except delayed student loans)

No doubt these stduents affected will be using their overdrafts right now.

Nothing from my parents. I work during the entire length of the summer holidays, which provides a nice little fund for the following year.

vaporate

jambosans wrote: »

The bank will only "turn nasty" if you mis-manage the borrowing e.g. outgoings are greater than incomings.

The main issue with overdrafts (IMO) is the customer's understanding of the borrowing, i.e. short term (reviewed annually) and repayable on demand. If you've always had an overdraft, then it would be quite natural to assume that it's a permanent fixture.


Most banks offer graduate accounts with an additional few years interest free on their overdrafts. Some banks will even convert their overdraft into an interest free loan (e.g. RBS Graduate Royalties).

I have natwest graduate account myself.

What are the chances of Natwest calling in the full overdrawn balance?

err example: How many months of account inactivity would they call it in?

vaporate

glider3560 wrote: »

Nothing from my parents. I work during the entire length of the summer holidays, which provides a nice little fund for the following year.

You're VERY luck. There was no work available during my summer holidays.

Inactive

vaporate wrote: »

You can't budget with no money! (student loan not enough, including the fact that thousands of stduents had their loan money delayed.

" No money " come on, everybody in the UK gets basic support.

Either earn more, or spend less .. simples.;)

Sharon87

I believe that people should be responsible for their own money. And I was a student who stupidly used up the overdraft. Although some of that was for payments for uni like deposit for halls and paying for half the van and petrol to get my stuff to uni. When I was running out of money I managed to get a part time job at uni which helped me loads. My final year I saved £2000, my OD was £1500. However I moved to London after uni, which put me back into my overdraft.

I've had a couple of bank charges in the past and one of them I managed to get reversed as a goodwill gesture (transferred money in same day as DD instead of previous day).

I was thinking the other day about Halifax Reward accounts and how the £5 a day for going over your limit is a good system for people who actually check their accounts. It also goes toward the Reward account money of £5 a day. So people who manage their money well are rewarded, which is a good idea. (still don't like the £1/day for authorised ODs though grr)

jambosans

vaporate wrote: »

[/B]

I have natwest graduate account myself.

What are the chances of Natwest calling in the full overdrawn balance?

err example: How many months of account inactivity would they call it in?

Honest answer, I don't know. Although IME as long as something is running through the account the overdraft is unlikely to be withdrawn. If an account sits inactive for a few months some banks will place the account into collections for monitoring and send out a letter requesting funding ASAP. The overdraft is not withdrawn immediately. Again, IME (not specifically with NatWest) banks are more lenient with student/ graduate overdrafts due to the extenuating circumstances under which they are granted (i.e. for subsidy of education, and relatively low incomings).

My answer is vague because: a) I've never dealt with RBS or NatWest and; b) all banks operate slightly differently, so I can only give an educated best guess.

vaporate

Inactive wrote: »

" No money " come on, everybody in the UK gets basic support.

Either earn more, or spend less .. simples.;)

What basic support? I'm talking from the perspective of no benefits, no parental help and delayed students loans.

I don't agree that banks charges are fair, especially when it is no longer under your control. Case of getting blood out of a stone. (I've never been charged myself)

'simples'.

PandorasJar

I think the violin strings are coming out here. Everyone in the country can get some form of benefit, whatever money you are on.
No work? I find that hard to believe, there are always paper rounds, shelf stacking jobs, christ ironing and gardening by knocking on doors! There is always something, whether or not it is below you is another matter.

I chose against going to Uni and got myself much further than most people I know now coming out with nothing. For degrees in Law/Medicine etc then yes Uni is essential, but for most students, studying Events Management is just an excuse to go drinking daily. I couldn't afford to smoke, so last Jan I gave up, 40 a day to nothing makes a difference in your pocket. I used to go out most days, but now I probably use one bottle of wine a month, which is mainly for cooking, another massive saving.

I find lots of sob stories come about when people have plenty of choice. I see no reason why anyone should fund people for free? If you want the degree, then you take the debts that come with it and accept that the degree must be important enough to be able to repay it or mean enough to accept them.
If you're studying something for the sake of it, then that's no reason for us to feel guilt about it not repaying.

P