Overdrafts as Longterm borrowing

greensalad

nkkingston wrote: »

I know a lot of people at uni who deliberately maxed out their interest free overdrafts, put the money in a high interest savings account along with their student loans, and lived off 0% credit cards. It was all very baby's first stoozing adventure, and was tacitly encouraged by the banks because it meant you opened more products with them. Of course, when you're moving house every year or more often, you don't tend to remember to update your bank every time, and when that overdraft suddenly switched to interest the fines would mount up at high speed before you even realised.

You obviously knew a lot of different students than me! Most of my friends didn't have the credit to get a 0% card whilst students, nor would they have been able to live without the OD!

FalseEconomist

It was our overdraft fees that have led to my lightbulb moment. Waiting desperately for my wages to be paid in to my account to see over half of them vanish immediately. Our poor money management was costing us.literally hundreds a month.

My first step has been to move the overdrafts onto a 0% card and close the.facilities. I can now easily see and work on this debt, I'm really hopeful that this will really help in out quest to manage this money better!