Overdrafts

lynxptc

What are the exact rules surrounding overdrafts? I just wondered how long overdrafts can be used for e.g how long you can be overdrawn for without the bank starting to have a go at you? What is the longest anyone has been overdrawn for?

wills7

i'd be interested to know too

Tori_Bellatrix

I don't think there are any set rules are there ... it's entirely at the banks discretion ..:D

sgx.saint

Agree with Tori. Each bank will have its own criteria for their own financial products.

Best thing to do is ask the bank directly.

RayWolfe

Don't forget that overdrafts are entirely at the bank's discretion and can be recalled by the bank without any reason being given. Long term debt is almost always better handled by a loan.

abitrubbish

Not proud, but I have been VERY overdrawn for a very long time (10 years?). The bank doesn't seem to mind, they get regular interest and occaisional penalties out of me when I get lazy and stop managing my account properly. They didn't even mind when I went on maternity leave and stopped getting paid.

I agree, it would probably be much cheaper and more sensible to cover it with a loan, but that seems so much more real somehow, whilst it's an overdraft its just temporary...

johnbfan

My Other Half and son used their overdrafts as an income (constantly overdrawn by the maximum amount). This went on for some time and now they have had that facility taken away and have been denied it indefinitely now. Both of them are terrible at dealing with finance and have abused the arrangement, so have been told they will not be allowed another full stop.

They have tried swapping banks but due to this no other bank will take them on.

BONJOEY

wow makes you realize that sometimes there very useful and others times 2 tempting.