Cancel your overdraft you idiot
Ex-Graduate account overdraft, im having trouble clearing
- Thread starter DJMK4
- Start date
Cancel your overdraft you idiot
Don't be so sure. If the OP gets completely stuck and doesn't have that credit line available, what are the options? It's either a family/friend loan, or it's the sharks. If the former isn't possible, you are going to have to get some crazy 1 billion% APR. I'd much rather just learn how to deal with having an overdraft available.
I disagree. A credit line in the form of an overdraft is very useful. Interest on £3.10 for a few days is a lot less hassle/cost than an unauthorised charge fee of £25 or bouncing payments.
If he can get a low-rate/0% card, I would recommend he spend as much as possible on that while putting his entire income in to paying off his overdraft. That is the most financially efficient way of doing it. In fact, spending as much as possible on credit cards is a great idea - either get cashback (often ~1% of all expenditure) or pay it off in the future having been charged no interest. It's probably the best way of spending money.
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Thats what im going to do
£600 per month back on per month, clear in 3 months
£1k still in savings just incase
However the overdraft will have to go. I dont want it there, its been a big weight on my shoulders and I wouldnt trust myself with it.
With a possible £600 going in to my savings account per month, I wouldnt need overdraft
Permabanned
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for my overdraft i have allready said to my self that i will sell all my PC stuff and pay it off then save for new pc... Will cost more in the long run but.... I get Brand new High end stuff 
Caporegime
I dont think its a question of learning
I know how i should use an overdraft - but i dont. I end up wasting it by spending money i dont have. Its like an addiction - you know its wrong but you still do it.
I find it easier to just remove my overdraft altogether (and have)
Then your not constantly beating yourself up about it and worrying about the debt.
I agree completely, but I'm not convinced it would be the best option in this instance.
Soldato
This. You always pay of your most expensive debt first. The interest paid to keep you overdraft is ruining any interest gained on your savings.
I really think they should teach basic financial skills at school. It isn't rocket science.
Man of Honour
I thought you didn't have direct access to your savings?
Soldato
1. The car is a red herring and should be ignored.
2. There is no point saving ANYTHING until the Overdraft is paid off. Simple interest calculation.
3. If you cannot control what you spend just because it is there you either need to grow up or you are beyond help.
4. Stop going la la la and listen to people giving you good advice in this thread.
Soldato
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- 10 Mar 2006
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This has probably already been mentioned, but why don't you use your savings to pay off your overdraft, and then top up your savings there after?
This must've been said already.
This must've been said already.
Stop spending your money.
Having a savings account is pointless if you're going to continue spending deeper into your overdraft just because it's readily accessible. Just because it's in a savings account doesn't mean you're saving if you're frequently using money from another account.
Having a savings account is pointless if you're going to continue spending deeper into your overdraft just because it's readily accessible. Just because it's in a savings account doesn't mean you're saving if you're frequently using money from another account.
Don't remove it, just knock it down to an amount between £50 and £250, whichever best suits how many bills there are paid from the account . An overdraft is ideally there as a safety net and it's perfect for that. Don't get rid of it entirely and then find yourself with fifty quid in charges simply because your phone bill direct debit was higher than you were expecting.
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Whilst this is the best thing for normal people to do, its quite clear the OP has the willpower and money management skills of a dead squirrel and any form of credit is going to leave him in an even worse situation. If he gets a 0% credit card, after month 1 he will max it out by buying loads of pointless rubbish.
You can tell this just from his attitude in this thread. There is awesome advice here, but he wont take it, and he is doomed to a life in and out of debt, but with a 50" TV.
Put your £450 savings and your £250 overdraft repayment into the overdraft and it'll be paid off in 3 months. You can then (re)start saving for your next car. Your current car will last for 3 months.
Caporegime
