My bank have offered me a £2000 overdraft on my account, the thought of having an extra 2 grand to rely on is nice but obviously it comes with a price if used...i don't have bundles of dough..but manage to survive month to month....should i take it? or leave it... genuine advice please...
Got something to say or just want fewer pesky ads? Join us... 😊
Overdraft.....or no to overdraft....
- Thread starter danwa08
- Start date
willyfantastic
New member
- Mar 1, 2009
- 2,368
don't see why you wouldn't to be honest - would only use it for an emergency though myself, but the fact you can get a nice safety net just incase something terrible could happen means i would take it
Da Man Clay
T'Blades
- Dec 16, 2004
- 16,254
Unless you need it, no. It's a slippery slope and once it's there you're likely to make use of it for things you may not need.
midnight_rendezvous
Well-known member
I wouldn't personally. When I had my overdraft I kept spending money that I didn't have and constantly justifying my use of it. Took me forever to pay off. If you can get by without I don't see why you'd need it.
- Jul 10, 2003
- 25,809
Just say no. Borrowing money will cost you money you don't have in the first place. It is a dodgy racket run by dodgy people.
You have not been charged for this advice
You have not been charged for this advice
BensGrandad
New member
Handy to fall back on if you have the will power to only use it in an emergency
StonehamPark
#Brighton-Nil
100% spot on.
Worthingite
Sexy Pete... :D
Take £500, or something you know that you could easily manage to pay back if everything goes tits up
symyjym
Banned
If you manage to survive, don't do it unless you know there will be times when you may need it. My £2k one costs me £150 a year so as long as it is not abused it can be useful.
Biscuit Barrel
Well-known member
My advise is not to spend any money that is not yours. Even if you had it for emergency's only, you may dip into it. Turn them down and if you manage your account correctly the offer will always be there in the future. I do remember Martin Lewis saying that an overdraft is an expensive way of burrowing money. If you do need some extra money, a loan from your bank will work out cheaper.
Gullflyinghigh
Registered User
- Apr 23, 2012
- 4,279
If you don't need it now, and there's nothing upcoming that you might NEED it for, then just leave it.
The Camel
Well-known member
Definitely do it unless you have zero self control.
It is very useful back up if you need to get hold of money quickly.
A friend turned one down a few years ago and then needed money urgently to pay for hospital fees abroad.
He ended up borrowing from Wonga.
It is very useful back up if you need to get hold of money quickly.
A friend turned one down a few years ago and then needed money urgently to pay for hospital fees abroad.
He ended up borrowing from Wonga.
jakarta
Well-known member
You get charged for having an Overdraft Facility whether you use it or not - given you have several weeks leeway with a Credit Card why don't you apply for this if you think there is some variation in your cashflow?
I used to have an Overdraft Facility for my business but ditched it a few years ago when I realised how much it was costing me and the fact that the Company Credit Card could smooth things out.
Of course I had to trade successfully for a few years in order to get the Credit Card. Banks, doncha love them?
I used to have an Overdraft Facility for my business but ditched it a few years ago when I realised how much it was costing me and the fact that the Company Credit Card could smooth things out.
Of course I had to trade successfully for a few years in order to get the Credit Card. Banks, doncha love them?
ees complicated no?
New member
I thought you only got charged if you went over your overdraft limit? Mines £250 and I never seem to pay a fee but I went over it a couple of times and was charged £8.50? I'm with Barclays btw.
jakarta
Well-known member
Personal A/C probably different to Business A/C, it was a 5K Facility but it was costing me hundreds of pounds a year!
surrey jim
Not in Surrey
I bank with Lloyd's and have a £2k overdraft which is free* provided I don't go over.
Generally never use but handy if have a month or so where bills are higher and go slightly in. I always ensure that it's not used excessively and that I can pay it off by next pay date. I'm sure if I relied on it the bank would try to use it as a way to sell a loan/ increase fees.
*well I do pay £25 per month but also get travel insurance, home emergency cover, mobile phone insurance for family and AA cover (also credit report which is useless)
Generally never use but handy if have a month or so where bills are higher and go slightly in. I always ensure that it's not used excessively and that I can pay it off by next pay date. I'm sure if I relied on it the bank would try to use it as a way to sell a loan/ increase fees.
*well I do pay £25 per month but also get travel insurance, home emergency cover, mobile phone insurance for family and AA cover (also credit report which is useless)
Mellor 3 Ward 4
Well-known member
aliakbanrafsanjali
New member
- Dec 29, 2012
- 117
I would say that it depends on your circumstances if you have savings then NO, but if you have no safety net they can be a bit of peace of mind in the event of a crisis. Used only when required can be a really good asset!
Ernest
Stupid IDIOT
If you don't need it then don't have it, debt is a terrible thing and once you go into the red then it can spiral out of control.