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HELP! should i get rid?

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i currently have a £600 overdraft. this month i got paid a lot more than i thought, now should i get rid of my overdraft now i can afford tolive without it for a month or not. - does it look good to creditors to have it - its just im always in it! every single month by 4 or 500 pounds.
#113 12K in 2020 Challenge #113 £17,103/£12,000 £15000

Comments

  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    I look at this way .... you've already spent the extra you received this month. So now, you are "level". Why not try & keep it that way - or even try to save a little every month into something like Alliance & Leicester and/or ING?

    :)
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • funkymonkey
    funkymonkey Posts: 524 Forumite
    Part of the Furniture 100 Posts Name Dropper Uniform Washer
    absolutly! except i have little control! ha ha! i know if it is there then i will spend it on pizza when i could cook etc - you get what i mean?!

    i just dont want to get rid of the overdraft if it looks good to creditors that i have one.

    i supose the other option is to get the bank to reduce it to £200 or somthing.
    #113 12K in 2020 Challenge #113 £17,103/£12,000 £15000
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ...i just dont want to get rid of the overdraft if it looks good to creditors that i have one...

    Why do you think about creditors but not about yourself? :mad: Usually overdraft is not the cheapest way to borrow money.
  • funkymonkey
    funkymonkey Posts: 524 Forumite
    Part of the Furniture 100 Posts Name Dropper Uniform Washer
    decided on a happy medium, i have reduced it to £100. its there in an emergency only!
    #113 12K in 2020 Challenge #113 £17,103/£12,000 £15000
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ... i have reduced it to £100. its there in an emergency only!
    If it is only for emergency there is no need to reduce it. You can have £1000 overdraft available and never use it. The lower limit, the higher chance to go over the limit in case of real emergency.
  • funkymonkey
    funkymonkey Posts: 524 Forumite
    Part of the Furniture 100 Posts Name Dropper Uniform Washer
    true but im not very good at restraining! i know i would spend it - i would see somthing and think oh sod it ill buy it! but you are right - and if i do need it again in an emergency, then i will just ring them up and re instate it
    #113 12K in 2020 Challenge #113 £17,103/£12,000 £15000
  • Smiley_Mum
    Smiley_Mum Posts: 3,836 Forumite
    I've been Money Tipped!
    Set yourself a challenge. Have the O/D set at £100 for a month and just draw out money once a week but sufficient so as not to go into the red. Work out a budget for housekeeping, car, going out etc etc and stick with it. You may find that you spend less, so long as you restrain yourself and not get sucked into feeling you "need" things all the time. Ask yourself whether you would rather have the money in the bank or the item. Just use cash also, but not O/D cash. Downgrade your shopping a little, say you usually spend £X a week or whatever try and reduce it by going for the cheaper options to see what you can save. You may surprise yourself.
    “Ordinary riches can be stolen, real riches cannot. In your soul are infinitely precious things that cannot be taken from you.” - Oscar Wilde
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    absolutly! except i have little control! ha ha! i know if it is there then i will spend it on pizza when i could cook etc - you get what i mean?!

    i just dont want to get rid of the overdraft if it looks good to creditors that i have one.

    i supose the other option is to get the bank to reduce it to £200 or somthing.

    I'm not sure it does. Creditors like to see a record of regular payments against debt.

    You would be better having a credit card that you used for some of your budgetted expenses e.g. put your food budget on a CC and then pay it off, IN FULL, at the end of every month.

    That tells your creditors that you are responsible with debt. I don't an overdraft does that, as there are no "regular repayments" recorded against an overdraft.

    Do you have a budget? If so, stick to it and SAVE THE EXCESS! You know it makes sense ;)
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
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