Overdrafts.....

BONJOEY

hi i know most people have an overdraft, well almost everyone i know.....

do people get worried if they are constantly overdrawn, i,e that the bank will take it off them.....

and do people constantly live in there overdraft?

how long has anyone been overdrawn ( authorized) and not gone back into credit?

edsteruk

Hi,

Until recently I was in my authorised overdraft for about 1 and a half - as soon as I paid it off they uppped it to 5k... makes you wonder if they are trying to trap you into debt!!

Only thing I found was that its very depressing seeing a big negative balance there and then seeing it there is almost the tendancy of saying "oh what the hell, another £50 taken out wont hurt"... if you keep going like that you end up very overdrawn!

I now personally take pride in trying not to go overdrawn at all unless an emergency arrises (still working on my emergency fund!!!)

wyebird

Errrm about 10 years before I saw the light. All that money wasted!

BONJOEY

edsteruk was you constantly overdrawn for 1 and a half years!, then you went into credit and they upped it, like you say making it even more easier to get into debt lol


wyebird, what made you see the light?

thanks for both replys x

wyebird

Adding up what it was costing me...£30 a month interest = £360 a year .....£3600 over 10 years _pale_. So, basically, I spent the money, paid it back twice over and still owed it. An overdraft should really be a safety net not a permanent feature, I use mine now occasionally, but only for a day or two.

mrsplinter

I was going through my statements the other day. I did not go into credit and was overdrawn continuously from Jan 03 - Dec 04. However, this was on a student/ graduate bank account. In the late 90s I think I was permanently overdrawn on my student account for about three or four years. Now working - I am overdrawn for about three weeks a month. I'm not too concerned that my overdraft will be withdrawn, its not happened yet in the past 12 years. Hoping to pay it off by February next year anyway.

edsteruk

Hi BonJoey - Yes I was in constantly for 1 and half years - got within a few hundered of being positive then all my bills would go out!!!

BONJOEY wrote: »

edsteruk was you constantly overdrawn for 1 and a half years!, then you went into credit and they upped it, like you say making it even more easier to get into debt lol


wyebird, what made you see the light?

thanks for both replys x

Bren_D

The last time I was in credit was approaching two years ago

But I've got a student account so, I believe, the overdraft is interest free and I'm well within my limit and whittling away at it, things could be worse.

edsteruk

Bren_D wrote: »

The last time I was in credit was approaching two years ago

But I've got a student account so, I believe, the overdraft is interest free and I'm well within my limit and whittling away at it, things could be worse.

I would say as long as you don't just blow it all and as its interest free its not a big deal really yet! But just don't make a habit of it when you start paying interest on it!

Bren_D

edsteruk wrote: »

I would say as long as you don't just blow it all and as its interest free its not a big deal really yet! But just don't make a habit of it when you start paying interest on it!

It would be dangerous for me to start thinking like that, paying it back as quickly as I can seems like the way forward. Having said that I think they have just added £500 to my limit I'm not entirely sure how long it is interest free for now that my accout is a graduate one. I'll have to look into that.

Dylanwing

Can accounts be run in credit??:rotfl:

I have an od with Nationwide and the interest rate is quite reasonable. After the experiences with Sainsburys Credit Card pulling the rug, I do worry that they might just suddenly withdraw it. Fixed rate mortgage ends next July, so I will try and clear it then, when I move to a new lender.

If it was unilaterally withdrawn it really would muck me up and cost me heaps as I pay all the penalty fees for non-payment of debts, and would muck up my credit rating so that I could not just move it to a loan.