Wouldn't extend my o/d - cross!

katiep_2

Hello - I'm just after a quick bit of advice if possible please?
We've had a really tight month this month, and realised at the beginning of the week that we were short of money, so I rang the bank to try to extend my o/d. They said yes, but then wrote to me the next day saying my credit score wasn't high enough so they couldn't (why this is I really don't know). I've just popped on to check my balance, and I'm £10 over my limit, which no doubt they will charge me for. I'm so cross because I tried to do the responsible thing and arrange an extension so that we didn't go over. Do you think there's anything I can do? It doesn't seem worth going through the reclaiming process for one charge!

katiep_2

I've just been on the phone to them and they're going to be charging me £50! :eek:
Apparently I'm not supposed to eat or put petrol in my car.

techno_geek

The bank might be more flexible/willing to extend your overdraft on a temporary basis, e.g. £200 more for 2 months?

jonesMUFCforever

I think you have to ask before spending the money not use the overdraft anyway! That is why you will be charged.

Beate

The responsible thing would be trying to stay within your limits, not keep extending the overdraft. I don't agree with bank charges as they are not proportionate to the banks' costs, but neither do I agree with the sentiment that there wouldn't be a money problem if only the overdraft would be higher. But if this is a one-off charge, depending on the bank and what kind of day the person had you are speaking to, they might be willing to waive the bank charge just this once if you ask them nicely. It is worth a try. £50 really is excessive, so there is no harm in trying to get the money back, while at the same time trying to stick to the limit in future.

katiep_2

Well thanks for all your advice everybody. I'm glad you are all so perfect with your budgeting. The sad fact is that in my life, we JUST earn enough to get by, and sometimes life throws us extra bills and expenses that we haven't necessarily budgeted for. Unfortunately in the mean time we still have to eat and get to work every day, so while we can make cut backs, we do still have to spend. I did attempt to get the bank to waive the charge on this occasion, but the woman on the phone was of the view that I shouldn't feed myself or my family, or go to work to earn a bit more next month to redress the balance.

Hazzanet

I think nowadays, people seem to feel that the overdraft that a bank has granted them is some sort of extension to their wages or salary. That is, if I was £1,000 overdrawn at the end of this month, and at the end of next month I'm still £1,000 overdrawn, there isn't a problem - unfortunately there is.

At the end of the day, the money needs to be paid back so some strategy needs to be put into place to rectify the situation. About 6 years ago, I found myself in a similar situation to you - KatieP, and I had to drastically reduce my budget and get a second job on top of the full time one that I already had to put it right.

Extending the overdraft further isn't going to solve the problem - it'll make it worse next month, The fact is you either need to reduce your outgoings or increase your income.

Hazza

bengal-stripe

katiep wrote: »

The sad fact is that in my life, we JUST earn enough to get by, and sometimes life throws us extra bills and expenses that we haven't necessarily budgeted for.

That's what the overdraft is for.

There was a time when only very wealthy people had bank accounts. Everybody else got paid in cash on Friday and that money had to last ‘til the coming Friday. Most people managed to do that. Those who could not, had to rely on a little line of credit in their local grocers or they took their wedding ring to the pawnbrokers.

Maybe those were better times.

YorkshireBoy

bengal-stripe wrote: »

There was a time...

But 'that time' didn't have:

• Sky TV
• Mobile phones (at all, yet alone for 8 and 9 year-olds)
• Plasma
• Playstation 3
• 2 weeks in the sun each summer
• Nike trainers
• Reebok trackie bottoms
• etc

...but it did have:

• Housewives with extraordinary budgeting skills
• Kids who took part-time jobs (they had to 'put to' so they could have Nike, Reebok, etc rather than 'Winfield' [that's Woolworths for the younger ones] pumps)
• Parents who said NO!

Maybe those were better times.

Hmmm, certainly makes you wonder doesn't it?

firesidemaid

[QUOTE=katiep;5229893I_did_attempt_to_get_the_bank_to_waive_the_charge_on_this_occasion,_but_the_woman_on_the_phone_was_of_the_view_that_I_shouldn't_feed_myself_or_my_family,_or_go_to_work_to_earn_a_bit_more_next_month_to_redress_the_balance.[/QUOTE]

i would go into your branch to resolve this. tell them you were told they would extend your overdraft. and, that once you took some money out they changed their mind and charged you! it really is a massive charge and also 'illegal'. if they no again, let them know you will put it in writing and make a complaint.

but, about the reason you went over drawn. have you thought about posting your soa/budget on the debt-free wanabee board. everyone is very helpful and full of great money-saving and budgeting ideas. you don't need to be in debt even, just having a hard time. there is a sticky at the top of the board/thread to help you.

good luck x

katiep_2

Thank you sazzacat for some constructive advice. I know exactly why we went overdrawn. We had a slight windfall a couple of months back and got a bit careless with our money. We realised (too late) last week that it had run out. I accept that it's my own fault but there really isn't any point beating myself up about that any more (believe me, I have done plenty of that over the past week or so). I just have to take the bull by the horns and cut back again. We really aren't in a great deal of debt. We have a very small overdraft on our current account, some remaining student overdraft to pay off, and a student loan each. I'm still not earning enough to pay mine off, and hubby is paying his off at about £5 a month. We have sat down and budgeted for the next month which should allow us to clear our small overdraft and pay the unexpected bills that have arrived, and with a few cut backs and a bit of penny pinching we should be back on an even keel the next month to continue paying off the student o/d. Between now and then I intend on doing a full household budget and setting up a savings plan so that if this arises in the future we have a "rainy day" pot to dip into.

With regards to pursuing a refund from the bank, I have an internet only account so have very limited over the counter services. I am going to write to the bank requesting they refund the charge, and I'm also considering moving banks as there has now been a complete breakdown of trust. I am very rarely in my overdraft at all, and on this one occasion where I slipped up they refused to help me manage my funds pro-actively.