Stupid, stupid mistake

debtfreeby2013

innovate wrote: »

OK, so we're all a happy family again, hooray!

Now, debtfreeby2013, how are you going to avoid a similar issue in the future? Because if it did happen again, they won't let you off so lightly again. You can be sure of that. The options I see are:

1. never go overdrawn again, definitely not ever again
2. get an interest-free overdraft buffer but still aim to never ever go overdrawn again (Halifax, Santander, First Direct all offer small amounts of free overdrafts)
3. build your own small overdraft buffer by aiming to never ever going below £x, where x stands for 10, 20 or whatever

Options 2 and 3 give you a small safety net. Option 1 is only viable if you don't get carried away again.

Thank you innovate. I've done a bit of a financial spring clean as it were and have decided that I'm going to start getting money of ether to be able to clear my debts by the end of this year so I will be setting aside £100-£200 a month and paying debts off in chunks so by that logic this wont happen again as I will always have money somewhere to ensure it doesn't. Also, even though I know I don't have any money I will always check my bank account because it was a slight miscalculation that meant I had spent £4 more than I thought.

YorkshireBoy

debtfreeby2013 wrote: »

Sorry, should have been clearer

Clarity always helps.

On another point, why are you paying for a bank account if money is tight? Do you really need free worldwide travel insurance?...gadget insurance?...special mortgage rate?...20% off your home insurance?

Even their standard current account only charges a small amount of debit interest for overdraft usage and carries no fees.

innovate

Voyager2002 wrote: »

And three cheers for the Co-op bank being lenient and helpful. I don't think this story would have had such a happy ending had the bank in question been Santander.

There would have been no story at all if the bank had been Santander, because they give people a £12 overdraft grace. So the OP would never have been in trouble for going £4 in the red.

EDIT: having read the further clarifications: the Santander £12 free overdraft would of course not have covered the £204 overdraft the OP had clocked up.

Also, my suggestions for getting a bank account with a free overdraft are not much use now that we know that the OP bust through their agreed free overdraft limit.

debtfreeby2013

YorkshireBoy wrote: »

Clarity always helps.

On another point, why are you paying for a bank account if money is tight? Do you really need free worldwide travel insurance?...gadget insurance?...special mortgage rate?...20% off your home insurance?

Even their standard current account only charges a small amount of debit interest for overdraft usage and carries no fees.

I use it for the gadget insurance and the ID protection. I have an iPhone and an iPad and on they cost between £5 and £10's each to insure for use out of the home so £9.50 a month seemed ok. Plus I'm forever losing my purse and my keys so the ID protection who's name I can't remember now, helps if I lose things by contacting the other card companies.

I know, I know, why have I got an iPad and an iPhone? I use the iPad instead of a laptop which I would use for my studies. The iPhone I got 18 months ago and have been regretting it for about the last 17 months - great phone but shame about the price of a contract.

eschaton

debtfreeby2013 wrote: »

I use it for the gadget insurance and the ID protection. I have an iPhone and an iPad and on they cost between £5 and £10's each to insure for use out of the home so £9.50 a month seemed ok. Plus I'm forever losing my purse and my keys so the ID protection who's name I can't remember now, helps if I lose things by contacting the other card companies.

I know, I know, why have I got an iPad and an iPhone? I use the iPad instead of a laptop which I would use for my studies. The iPhone I got 18 months ago and have been regretting it for about the last 17 months - great phone but shame about the price of a contract.

Drop the gadgets and associated insurances and live within your means.

Then you won't need to worry about bank fees.

debtfreeby2013

eschaton wrote: »

Drop the gadgets and associated insurances and live within your means.

Then you won't need to worry about bank fees.

I do live within my means, I went £4 over my overdraft so getting rid of the gadgets would be a slight over reaction.

eschaton

debtfreeby2013 wrote: »

I do live within my means, I went £4 over my overdraft so getting rid of the gadgets would be a slight over reaction.

Looking at your signature and this thread, I would disagree.

If you lived within your means you would be debt free, you aren't.

The days when £4 becomes a significant amount of money is the day I would worry.

innovate

eschaton wrote: »

The days when £4 becomes a significant amount of money is the day I would worry.

Wise words.

Hope debtfree2013 takes heed

debtfreeby2013

eschaton wrote: »

Looking at your signature and this thread, I would disagree.

If you lived within your means you would be debt free, you aren't.

The days when £4 becomes a significant amount of money is the day I would worry.

But those debts were accrued years ago an I pay a significant amount to them and have plans in place to clear them by the end of this year. I have paid £15k towards paying off debt in the last 6 years and considering I only earn £10k a year that's actually been very hard work so, yes, I have made one extravagant purchase but seeing as I need a laptop for my studies anyway it wasn't a frivolous purchase.

debtfreeby2013

innovate wrote: »

Wise words.

Hope debtfree2013 takes heed

I do take heed and learnt this lesson a good few years ago and have been paying off my debts ever since. I do buy things for myself from time to time but I have done this without using a credit card for 4 years - considering I used to do my weekly shop on a credit card because I didn't used to have any money after I got paid I'd say that's a pretty decent achievement.