Santander reducing my overdraft limit

jimjames

moneyaspie2024 said:

eskbanker said:

moneyaspie2024 said:

I rang Santander today and told them that my autism makes me vulnerable and sometimes I overspend, and while I don’t regularly use the overdraft and not usually in it by more than £70, it provides me with a safety blanket, such as if there is a payment delay with my wages or benefits, or I get sick from work and need to have the overdraft to manage short term. I am also trying to reduce my other debt by making more than minimum payments every month.

Sounds like a reduced overdraft facility may actually help with overspending - obviously if there are hardship problems arising from payment delays or sickness then that's different but they may be able and willing to help if/when such issues arose?

People overspend but that dosent necessarily indicate financial mismanagement, things such as Christmas and stuff come up

Christmas is the same time each year, it doesn't just come up in the way a broken car or boiler does. It's something that can be planned for but an emergency fund is worth building so you don't have an issue with unexpected bills.

My bank notify me if I go overdrawn and can pay in money by 2pm to clear it. Does yours do that?

MEM62

moneyaspie2024 said:

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  An overdraft is not the way to deal with it as (a) it is expensive and (b) cannot be relied upon as it can be withdrawn at any time.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. 

That is not always intentional.  Sometimes the way we write does not always convey something in the same way that we would verbally.  It is also the case that some sugar-coat responses less than others and the more 'blunt' or factual responses come across a harsh when they are not meant to be.  That said, for most of us an element of thick skin is better than being over sensitive when using forums.     

moneyaspie2024 said:

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. 

The will not be many that can save several hundred thousand pounds to buy a property.  A mortgage is the only sensible option for the majority of us - and at least your are borrowing, in most cases, against an appreciating asset.  Unlike borrowing for cars where their values plummet the moment it leaves the dealer.  

sheramber

moneyaspie2024 said:

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. 

But their debt is against  bricks and mortar which has a value.

Your cebt is juat a empty pit you need to fill.

born_again

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. 

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 ! 

To get a mortgage you go through stringent affordability checks. Unlike other loans which many lenders will hand out as it suits their lending criteria at the time.

I not picking on you. Or accusing you of irresponsible lending. I do not know your full situation.

I'm Just pointing out why their action now makes far more sense than from your opening post. So Santander are looking at your income & amount of available & used debt (they can see it all). The underwriters have decided that in your case the risk is to high. FCA?FOS would have them over the coals if they did not take action.

As to taking £2K out & telling them to whistle for it. Overdrafts can be asked to be paid back at anytime. Failure to do so can see your account frozen. So they could do this once funds come in covering the debt.
So be very careful with your actions. It can have far reaching effects on your ability to get other bank accounts, should they decide that they no longer want you as a customer. Which is their right.

Your credit report means nothing to lenders. That 3 digits mean noting to anyone other than the CRA that invent them.