Overdraft

Bern24

I have a 1800 ARRANGED overdraft which I max out most months. I am beginning to pay aroun 35 pounds a month interest (it was a graduate account and is now not)

I am going to teach English for 5 months abroad. I know I should have paid off my overdraft before but I got offered it as an oppurtunity and don't want to miss out! I won't be getting paid v much, mainly just expenses.

I have saved enough for my overdraft fees whilst away and my small phone bill which I pay by direct debit.

I am also going to be putting small amounts in the account (no more than £100pcm) whilst away.
The account does not require me to put my salary in or make a min payment.

My only worry is what will this mean for my overdraft? If they decide to revoke it whilst I am away (I have no reason to believe they will but hey! Stranger things have happened) what will happen in these 6 ish months before I return?

I am really worried about this and have debated not going (which is stupid because it's my dream!)

Thank you :j

sourcrates

Hi,
I see you've been reading up on other threads, about overdraught problems.
It's really impossible to predict what your bank will do, if anything, so I would not worry about it, deal with it, if/or when, it happens, until then, carry on as normal.

glentoran99

IF you aren't putting enough into the account to clear the overdraft it is quite possible they will withdraw it but as sourcrates says no point worrying about something that may happen,


I spend 3 years on a DMP with an active overdraft, after I left it and had more money they reduced it by a significant amount

Bern24

Sorry what's a DMP?
I will pay this off when I'm back, or while I'm out there, I'm not planning to just ignore it!

rockm87

I would get a different bank account to get wages or expenses paid into.
You need to treat your overdraft like a debt, and not just let it suck up your wages each month.

Make a monthly payment to your overdraft each month to get it reduced as soon as possible. If you are leaving the country is there anything you could sell that you wont be using for a few months (car maybe) to use as a payment to get rid of it?

Bern24

I have a seperate account.(HSBC and a Yorkshire) both basic accounts. I pay a majority of my wages into my overdraft because some of my bills Come out of it! I don't have anything to sell and it's an internship I'm doing.

I was thinking of speaking to my bank but then someone told me nothing would probably happen in 5 months if I was depositing small amounts of money and paying the interest and fees?

rockm87

Move the bills to another bank account, and get your wages paid into that. I dont think you should just be ignoring the problem til you get back.

Bern24

I'm not ignoring it. My plan is to move money into that account for my bills and the interest. But just enough to keep it afloat and any other spare income I can spare.
I am working on paying it back once I return is all I meant!

rockm87

So what is stopping you getting another basic bank account for your wages and bills?

Bern24

Nothing but I won't have 'wages'. I'll have expenses in the bank account I have in Thailand. And savings (£600 ish) to transfer between a basic account and the overdraft account monthly. I could move my phone bill over to this account but it's best in the OD account so that at least it's functioning as an account and not just an OD

rockm87

I would move everything out of the account with the overdraft, and just make monthly payments into it. treat it like a debt rather than a working account.