How much is your overdraft in relation to your income?

nicetomeetyou

How much is your overdraft in relation to your income?

My overdraft is £400, on the app is says I can go more... I get £500 a month paid into that account, my outgoings are £130 a month.

Neil_Jones

Your outgoings are only £130 a month?
Presumably you still live at home and you don't work full time?

Terry_Towelling

Why do you want to know? Do you plan to overspend and thereby influence your appointee to transfer more to you each month?

Ben8282

A very long time ago I was told that an appropriate overdraft facility was an amount slightly less than the net monthly income being paid into the account.

MovingForwards

0 overdraft on all my current accounts, that's a road I don't want to travel down.

PasturesNew

I've never had an overdraft.

Disasters come suddenly and often.

You should kill your overdraft. You don't need it.

Wean yourself off thinking they're "normal". It's the bank's way of sucking you into a life of debt and being beholden to them for years.

JGB1955

I have a £500 overdraft with Nationwide. Didn't ask for it and will never use it. I quite like it being there though..

Carrot007

No overdraft is preferable as they are habbit forming!


That said £1000 and around £3700 going in a month. Mostly not in it. Sometimes at end of pay cycle depending on timing.

Ben8282

An overdraft facility is a good thing to have but a bad thing to ever use.

MisterP123

£900 on one account only - I think it was £500 but upped it when I was in New York in 2016 as I was running out of cash!

Got myself out of the sticky situation of using it shortly afterwards and haven't used it since.

Money into the account is between £2,500 and £2,800 on average

jonnygee2

Mine is equivalent to about half a months pay. Never really use it but I like having it there anyway.

If you need more than a month's income then you need to reevaluate your financial situation. An overdraft is really for short term emergency use.