Is it a bad idea to get an overdraft?

Nate Silvers

Nate Silvers

Nate Silvers

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Joined
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My friend says it's like a perk of your bank and everyone uses it. At Natwest do they charge interest on a £100 overdraft? I heard you don't have to pay it back until you leave that bank.

Dodgy...:rolleyes:
 
Nate Silvers said:
My friend says it's like a perk of your bank and everyone uses it. At Natwest do they charge interest on a £100 overdraft? I heard you don't have to pay it back until you leave that bank.

Dodgy...:rolleyes:
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You should go into your bank and talk to them about it, with my bank (Barclays), I get a £220 interest free overdraft, though that is with a pay for acount (£5/mo for mobile phone insurance, up to £300 interest free overdraft etc), I'm sure, if you have a good credit record, then you
will be able to get a decent overdraft, and it's a good idea to have one, even with interest, and not use it to avoid any fees for accidentally buying something without enough money in your account or failed DDs etc :)
 
Overdraft is there as a last resort - would be silly not to have one - but if your using it often you seriously need to sort your finances out.
 
Never had or used an overdraft. It just bounces if not enough in there, which only happened when someone haxored my details.
 
student interest free overdraft overdraft = £1500 = fun times = bad idea


edit: i say this but ive never needed mine
 
Duke said:
Never had or used an overdraft. It just bounces if not enough in there, which only happened when someone haxored my details.
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Unless you manually pay all outgoings don't be so sure... one month my landlord screwed up the DD and triple charged the rent by accident... he did end up footing the charges too tho :D
 
Been thinking of a overdraft on my visa debit card account. But worried about fees/interest. Id only want a 50 quid limit so i could buy somit if needed and pay back very quickly when i get my money payed in.

HSBC btw.

Anyone got one btw, any fees to pay, interest to pay for overdrafting under 50 quid to say buy food and u could pay it back in few days. Or to get some gas money on.
 
An overdraft isn't necessarily a bad idea, it provides you with cash if you're a little bit short due to unexpected expenses - car repairs, tax bills etc. However it isn't a good idea imo to be constantly overdrawn - if you're going into your overdraft every month then imo you need to think about cutting back on your expenditure.
 
The higher the total of your overdraft on each current account you have + combined limits of all credit cards the better

i have been trying to break the £100,000 barrier (im waaayy off :()

who knows you might decide to just get it all and ***** off to somewhere nice and cheap
 
Rroff said:
Unless you manually pay all outgoings don't be so sure... one month my landlord screwed up the DD and triple charged the rent by accident... he did end up footing the charges too tho :D
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Actually I think when it changed from Switch to VISA Debit it may now go into an unauthorised overdraft.
 
I have a £250 overdraft facility on my HSBC current account. The interest is about 17% pa if I use it. It's handy to have for a few reasons like an unexpected bill, an opportunistic purchase or just if I accidentally get drunk and spend too much money.

e.g. This month I forgot that I had to pay my annual TV license so I'm about £30 into my overdraft until end of month pay day. This will end up costing me about 20p or something insignificant like that; better than a bouncing charge.
 
taB said:
I have a £250 overdraft facility on my HSBC current account. The interest is about 17% pa if I use it. It's handy to have for a few reasons like an unexpected bill, an opportunistic purchase or just if I accidentally get drunk and spend too much money.

e.g. This month I forgot that I had to pay my annual TV license so I'm about £30 into my overdraft until end of month pay day. This will end up costing me about 20p or something insignificant like that; better than a bouncing charge.
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Wonder if i would have to pay anything if i bought somit a few days before pay gets in (per 2 weeks i get payed).
 
When I was at uni I used my £1500 overdraft like an interest free student loan.

Now I have finished it is all paid back. Great deal on borrowing money when I needed it tbh, just dont go over it.
 
An overdraft is a great idea. You don't have to use it, but it can be used as a safety net if needed.

I have an authorised overdraft of £100 on my account that i use to pay all of my bills, and online purchases.

I have only used the overdraft once in the last ten years, and was not charged interest.
The account is topped up every month with a set amount to keep it in the black.

I would never go over my £100 limit tho.

My wifes birthday in Feb, so i may use the overdraft if she wants a lot.

Nice to know it is there if need, as long as you can pay it back.
 
Strife212 said:
Most banks let the transaction through anyway then shaft you with fees.
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Yep. Currently having loads of trouble with something like that.

A company tried to debit me for a monthly fee that I had cancelled months ago. Now I keep getting bothered about paying all sorts of fees back. The money didn't even go out as the overdraft was rejected so I didn't actually 'borrow' any money. I even went into the bank to pay off the overdraft + the fees for what happened and was told it was all ok, everthing was paid for now and sorted. Then the month after I got a letter saying 'we tried to pay for the overdraft fee without you having sufficient money in your account, have another overdraft + fee'. So I was billed twice, which I paid one of and then got the other one pending. Apparently you don't get billed for it until a month after. Good job bank staff who said it was sorted :rolleyes:

So the company wont pay for the trouble they caused by incompetent staff and the bank wont let it go. Awesome.

Have never had any problems bank wise. I have never had the need for an overdraft, hence why I cancelled the subscription. So it's not me being stupid that has caused this.

I'm wondering if someone knows, if I go and try to pay for something with my card that I got nothing/not enough for what I buy on, would it then go into a overdraft and then be billed later on for the 'trouble'? Or would it only do that if it was a monthly fee, like a subscription?
 
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