Overdraft

Miranda53

Hi,
My husband and I have a joint Nationwide Flex account, into which both our wages have been paid. We have a sizeable overdraft limit, and although we do spend quite a lot of time overdrawn, we stay well within the limit.

My husband has now been made redundant. Although he is hoping to find another job soon, it's very likely to pay well below what he had been earning, and there will be a signficant drop to the amount we pay into the Flex account monthly.

Assuming we continue to manage the account well, what do you think is the likelihood Nationwide will reduce or even cancel our overdraft, due to the reduction in money going into the account?

YorkshireBoy

There's always the chance the facility will get reviewed, but if it's done on 'throughput' maybe you could cycle (some/all of) your salary out and back in again to make the situation look a little better?

Miranda53

We do have 2 other accounts with Nationwide, with small balances (Invest Direct and Cashbuilder) so I suppose I could do this through internet banking?

How exactly does this cycling work?

YorkshireBoy

Miranda53 wrote: »

We do have 2 other accounts with Nationwide, with small balances (Invest Direct and Cashbuilder) so I suppose I could do this through internet banking?

I'd be moving it away from Nationwide, before bringing it back again personally.

How exactly does this cycling work?

It kids their 'systems' into thinking you've more coming in than you really have, ie a £1K monthly credit suddenly becomes a £1.5-2K monthly credit depending on what you can afford to tie up in the BACS ether for a few days.