Overdraft

sourcrates

As rockm87 has suggested, separating your essential payments from your overdrawn account, may be a sensible precaution.


If you open a new basic account for your day to day banking, and treat the overdraught account as just another debt to be serviced, then if your bank does recall the OD, it wont cause you any financial worries while your away.

Bern24

Oh I see. Yeah I'll get on it! Really should have planned more but hey we live and learn

If my bank withdraw my OD while I'm away, can I get a repayment plan? Or what happens? V confused at all this

rockm87

You will still need to pay it off, I contacted my bank and told them I would pay them a certain amount each month til it was gone. They were ok with that.

If it at least covers the fee's and interest you should be ok.

I think long term you need to look at your finances so that you dont rely on an overdraft in future.

Bern24

I had planned to do that this summer as I didn't think my job started until jan. it got moved forward and life is way more important than debt tbh!

I am paying it back as soon as I come back and have a job/income again!
I needed the oerdraft at the time as I was living in London as a student n working and still needed help!

I figure as long as it doesn't go over the arranged limit before I come back, they probably won't withdraw it but I'll have to wait n see!

Thanks!

DandelionPatrol

rockm87 wrote: »

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.

The downside of your proposal is that it is more likely to bring OP's account up on the bank's radar and more likely to lead to a recall of the overdraft. Which will probably mean defaults on OP's credit record. The upside is that if the overdraft is recalled to collateral damage for the phone contract or whatever is avoided.

Bern24

If they did recall the overdraft I can rearrange the DD online on the phones website? Or would the recall of the OD freeze my account of my phone too?

glentoran99

Bern24 wrote: »

If they did recall the overdraft I can rearrange the DD online on the phones website? Or would the recall of the OD freeze my account of my phone too?

No it wouldn't, only if you didn't pay the bill would the phone account be frozen

Bern24

This may seem dumb too, but I transfer money between my basic account and this O/D account monthly, and I've worked out in one 'charging' period I've deposited around £1690. Even though a lot of this has been transferring £200 to the basic account for a few days and then transferring some of it back into the O/D account so I didn't spend it on a night out or day out or w.e.

Will natwest see that as me depositing £1690 or will they surmise I am moving money between lots of accounts?

Is banking that complex?!

rockm87

They wont see it like that, it's not that complex.

If you pay money in, it will count as money coming in, doesnt matter where from.

I'd find another account to put your 'spare' money in though, rather than use your overdraft account.