Santander reducing my overdraft limit

MEM62

moneyaspie2024 said:

molerat said:

If you only ever use less than £100 of your overdraft why is having a £100 limit of so much concern ?

Banks have to hold reserves to cover their exposure.  That additional £1900 unused credit multiplied by several thousand customers adds up to a fair chunk of money needed to be held on immediate call. The same has happened to many with their credit card limits.  It is nothing personal against you or your managing of the account.

Yes I get that but who knows if sometime down the line I’ll need to use more ect, life is unpredictable and overdrafts aren’t actually intended to be used upto their limits. 

You are quite right, life is unpredictable.  However, you should have an emergency fund for unforeseen financial ups and downs.  An overdraft is not the way to deal with it as (a) it is expensive and (b) cannot be relied upon as it can be withdrawn at any time.

In today's world we have all become too reliant on borrowing to meet almost all of our financial needs instead of living within our means and saving for things.      

moneyaspie2024

You are quite right, life is unpredictable.  However, you should have an emergency fund for unforeseen financial ups and downs.  An overdraft is not the way to deal with it as (a) it is expensive and (b) cannot be relied upon as it can be withdrawn at any time.

In today's world we have all become too reliant on borrowing to meet almost all of our financial needs instead of living within our means and saving for things.      

Thanks for that, yes I definitely do need to build up a buffer, thanks for the non judgmental advice, people on here have been judgemental and condescending. 

born_again

moneyaspie2024 said:

k12479 said:

moneyaspie2024 said:

I’m 20k in debt.. 

Hang on...according to your post in your other thread you're £20k in debt, while also implying your income is less than £30k. Based on that, I'd say it'd be irresponsible if a bank didn't reduce the credit available to you. Leaving a £3k overdraft open wouldn't appear to be in either parties best interest.

You don’t know my circumstances, I pay nearly £1000 towards my debts each month and will be out of them in 4 years, you don’t know my circumstances. 

Also I don’t have any mortgage or rent and my rent is fully covered by HB, everyone’s financial circumstances is individual. 

No offense to you here.
Your post puts a whole different complexion on Santander's action.

You had a 2k overdraft & you admit in this thread £20K debt

https://forums.moneysavingexpert.com/discussion/comment/80985347#Comment_80985347

No mention on Income, other than £2.5K through this account.

Santander have done what is right to protect both you & them from further debt. 

moneyaspie2024

born_again said

No offense to you here.
Your post puts a whole different complexion on Santander's action.

You had a 2k overdraft & you admit in this thread £20K debt

https://forums.moneysavingexpert.com/discussion/comment/80985347#Comment_80985347

No mention on Income, other than £2.5K through this account.

Santander have done what is right to protect both you & them from further debt. 

At least it’s better than having 200k mortgage debt, unlike others I am responsible with my cash, if people with those debts should be able to get overdrafts then so should I OKAY ! 

moneyaspie2024

born_again said:

moneyaspie2024 said:

k12479 said:

moneyaspie2024 said:

I’m 20k in debt.. 

Hang on...according to your post in your other thread you're £20k in debt, while also implying your income is less than £30k. Based on that, I'd say it'd be irresponsible if a bank didn't reduce the credit available to you. Leaving a £3k overdraft open wouldn't appear to be in either parties best interest.

You don’t know my circumstances, I pay nearly £1000 towards my debts each month and will be out of them in 4 years, you don’t know my circumstances. 

Also I don’t have any mortgage or rent and my rent is fully covered by HB, everyone’s financial circumstances is individual. 

No offense to you here.
Your post puts a whole different complexion on Santander's action.

You had a 2k overdraft & you admit in this thread £20K debt

https://forums.moneysavingexpert.com/discussion/comment/80985347#Comment_80985347

No mention on Income, other than £2.5K through this account.

Santander have done what is right to protect both you & them from further debt. 

Im going to take all the 2 grand out now, at least they can’t take it off me then they can just reduce it gradually  

im not going to borrow responsibily if I get treated like this, they can sing for their money ! 

moneyaspie2024

moneyaspie2024 said:

born_again said

No offense to you here.
Your post puts a whole different complexion on Santander's action.

You had a 2k overdraft & you admit in this thread £20K debt

https://forums.moneysavingexpert.com/discussion/comment/80985347#Comment_80985347

No mention on Income, other than £2.5K through this account.

Santander have done what is right to protect both you & them from further debt. 

If I’m irrisponsable for having 20k in debt, then anyone with a mortgage is also irresponsible they should have saved for their home. 

moneyaspie2024

adamp87 said:

I don’t see anything wrong with what Santander have done and it hasn’t anything to do with having autism either or bot caring.

By your own admission the OD is never used, if it is it’s up to £75, the other benefit is having basically a £2k blanket.

But as it’s never used anywhere close to £2k they’ve decided that credit line isn’t needed, is recalled and could be used elsewhere.  

You can always open an account somewhere else and apply for a larger OD, but from whatever you’ve said the OD was mostly on the off chance of an unforeseen emergency.

No I blame some people on MSE who have made such an issue over irresponsibie lending that they have went and imposed a financial nanny state upon everyone else who pays their bills, hence why the banks are doing it. 

And people on here suggesting it’ll be better for me because I won’t be charged for unarranged, what nonsense, I have an arranged overdraft to stop me going unarranged in the first place ! 

lr1277

Ok I'll bite.

You talk about mortgages and other lending and your right to be lent money because other people have mortgages.

Mortgages are secured loans, usually on property. If you stop making mortgage payments, the bank, by going through a defined process, kick you out of the property and sell the property to get their money back. And if they don't get all the money the lent back from the sale, they might pursue the mortgage holder for the remaining funds.

You don't say what vehicle you used to borrow the 20k. But the bank must think as the loan is not backed by an asset, so nothing to sell so they are not gettting their money back.

The more you borrow (in whatever form) and if you don't have an asset or income to back up that borrowing, then banks will reduce their exposure to you by reducing the amount they lend to you.

With that I am out.

Stargunner

moneyaspie2024 said:

born_again said:

moneyaspie2024 said:

k12479 said:

moneyaspie2024 said:

I’m 20k in debt.. 

Hang on...according to your post in your other thread you're £20k in debt, while also implying your income is less than £30k. Based on that, I'd say it'd be irresponsible if a bank didn't reduce the credit available to you. Leaving a £3k overdraft open wouldn't appear to be in either parties best interest.

You don’t know my circumstances, I pay nearly £1000 towards my debts each month and will be out of them in 4 years, you don’t know my circumstances. 

Also I don’t have any mortgage or rent and my rent is fully covered by HB, everyone’s financial circumstances is individual. 

No offense to you here.
Your post puts a whole different complexion on Santander's action.

You had a 2k overdraft & you admit in this thread £20K debt

https://forums.moneysavingexpert.com/discussion/comment/80985347#Comment_80985347

No mention on Income, other than £2.5K through this account.

Santander have done what is right to protect both you & them from further debt. 

Im going to take all the 2 grand out now, at least they can’t take it off me then they can just reduce it gradually  

im not going to borrow responsibily if I get treated like this, they can sing for their money ! 

That would be very silly, because you will incur very high interest charges on it.

moneyaspie2024

lr1277 said:

Ok I'll bite.

You talk about mortgages and other lending and your right to be lent money because other people have mortgages.

Mortgages are secured loans, usually on property. If you stop making mortgage payments, the bank, by going through a defined process, kick you out of the property and sell the property to get their money back. And if they don't get all the money the lent back from the sale, they might pursue the mortgage holder for the remaining funds.

You don't say what vehicle you used to borrow the 20k. But the bank must think as the loan is not backed by an asset, so nothing to sell so they are not gettting their money back.

The more you borrow (in whatever form) and if you don't have an asset or income to back up that borrowing, then banks will reduce their exposure to you by reducing the amount they lend to you.

With that I am out.

Debt on personal loans and credit cards can be recovered by means of possession orders ect, although harder it’s still not impossible.

The point im making is that people who try and keep their credit ratings upto stratch, well end up believing the point of having a good credit history is not important or relevant, as the bank will cut their lending facilities regardless, for banks to cut limits there should be hard evidence of financial mismanagement, I.e. missed payments or defaults, the current situation creates an element of distrust where is based on mere risk or concern, all lending has a certain degree of risk involved. 

For a poster here to suggest that going into an unwarranted is “better” for people anyway because it dosent cost you any money are practically encouraging people to borrow irresponsibly.