Bank Overdraft.
- Thread starter DX24
- Start date
If you are currently in your overdraft and you choose to stop using one, you'll be made to pay it back ofcourse.
That's if they will even let you stop the overdraft function whilst inside of it.
I'd call your bank and get a definitive answer though.
That's if they will even let you stop the overdraft function whilst inside of it.
I'd call your bank and get a definitive answer though.
Read the Terms you signed up to (that have probably been amended several times since).
For example, I bank with First Direct. Their Terms allow them to insist on immediate repayment of any overdraft you have arranged with them.
For example, I bank with First Direct. Their Terms allow them to insist on immediate repayment of any overdraft you have arranged with them.
Soldato
- Joined
- 8 Mar 2007
- Posts
- 10,938
Surely you'd pay it off first and then cancel it. Why would you want to cancel it whilst you're in it?
If it's a "self-control" thing then just get it reduced so you're not tempted to go into it further and then cancel when you're out of it.
If it's a "self-control" thing then just get it reduced so you're not tempted to go into it further and then cancel when you're out of it.
Last edited:
Thanks again for the info.
The concept is I want to move money from my current account on to a credit card. though have recently discovered that a bank can removed mine or a overdraft. I have been with one of my banks since 2003 and the other since 2013 and never had any problems with either, Just got a bit worried in case they cancel.I'm paying interest on both and have seen online that is keeping them happy so for them to remove is more unlikely.
The concept is I want to move money from my current account on to a credit card. though have recently discovered that a bank can removed mine or a overdraft. I have been with one of my banks since 2003 and the other since 2013 and never had any problems with either, Just got a bit worried in case they cancel.I'm paying interest on both and have seen online that is keeping them happy so for them to remove is more unlikely.
If you've got an overdraft and you're servicing it within the terms then the bank is probably very happy with you.
Are you moving money from your current account (overdraft?) to a credit card, or are you moving debt? I imagine that it is the latter.
Overdrafts are normally cancelled for two reasons:
1. you've breached the terms, look like you cannot manage the debt and the bank has had enough and hits the nuclear option and cancels it
2. you've got an agreed overdraft, perhaps on an old account that isn't used as much and there isn't a great deal of income or activity on the account and it is within terms (and often in credit).
If you're looking to service credit card debt then there are other options. Are you asking the right question?
Are you moving money from your current account (overdraft?) to a credit card, or are you moving debt? I imagine that it is the latter.
Overdrafts are normally cancelled for two reasons:
1. you've breached the terms, look like you cannot manage the debt and the bank has had enough and hits the nuclear option and cancels it
2. you've got an agreed overdraft, perhaps on an old account that isn't used as much and there isn't a great deal of income or activity on the account and it is within terms (and often in credit).
If you're looking to service credit card debt then there are other options. Are you asking the right question?
Abyss
Your first sentence is what I was thinking.
I'm moving money from an account - overdraft to put some back onto my credit card.
My question is my banks are happy due to being great with their terms. Although lets say one account overdraft was removed than how would I pay them back? if overdraft arranged was £1500 and I had spent £1000, Would the £1000 need to be put back within a month or monthly etc
Your first sentence is what I was thinking.
I'm moving money from an account - overdraft to put some back onto my credit card.
My question is my banks are happy due to being great with their terms. Although lets say one account overdraft was removed than how would I pay them back? if overdraft arranged was £1500 and I had spent £1000, Would the £1000 need to be put back within a month or monthly etc
Soldato
- Joined
- 10 Oct 2005
- Posts
- 8,706
- Location
- Nottingham
It will depend on your banks terms and conditions. A friend of mine did have his overdraft on his student account removed soon after he left university by his bank and he was asked to pay it back within 30 days so that option is a possibility.
If you want to pay off a credit card, don't use an overdraft for doing it.
Get a 0% Interest balance transfer card, suck up the small one off fee for doing it, then make yourself a payment plan for paying it off and stick to it.
Banks can request an overdraft balance be settled immediately, whereas they cannot with a credit card.
Get a 0% Interest balance transfer card, suck up the small one off fee for doing it, then make yourself a payment plan for paying it off and stick to it.
Banks can request an overdraft balance be settled immediately, whereas they cannot with a credit card.