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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think living in overdraft is the norm?

319 replies

user1490465531 · 26/07/2018 10:31

Beginning to think it was just me.
Despite working I am always in my overdraft a week before pay day.
I have paid it of before only to be in it the next month.
Speaking to people it seems very common due to rising costs of living and no wage increase.
AIBU to think unless you have a fantastic paid job you will living in your overdraft.
I live a pretty basic life apart from odd treat so not exactly due to extravagant lifestyle don't own car don't go on holidays etc.

OP posts:
nonevernotever · 26/07/2018 10:33

Me too - not a huge overdraft (£100) but always seem to have to use a bit of it for something

Haberpop · 26/07/2018 10:35

Not any more but I used to be, I slowly reduced it until it was gone.

Mooey89 · 26/07/2018 10:35

Not overdraft but 0% credit card so yes the norm!

kaytee87 · 26/07/2018 10:36

I don't have an overdraft.

ohdeardeardear · 26/07/2018 10:36

Yes I'm always £400+ overdrawn. Stopped stressing about it now as I can't do anything about it.

FormerlyFrikadela01 · 26/07/2018 10:37

I had a £1000 from when I was a student that I maxed out every month. It was only a very very kind gift from my dp that meant i paid it off and now don't have one at all.

According to my sister who works in a bank overdrafts are basically the main source of credit banks like to push because people almost always go into them because they're very hard to pay off. You aren't required to make a monthly payment like a credit card and on payday it's cleared but then you need the money live. I hope to never have one again.

chickenowner · 26/07/2018 10:37

Not me or my DP - I haven't been overdrawn since I was a student. And I don't have a credit card either. I'm a part time teacher so not on a huge salary, it can be done!

ItsAllGoingToBeFine · 26/07/2018 10:37

I used to live in my overdraft format least half of every month. Now, even though nothing has really changed I don't because I use some budgeting software.

I realise that not everyone can do this though.

bumbleboots · 26/07/2018 10:37

no

Kannet · 26/07/2018 10:39

Honestly your best bet is to reduce it slightly every month. Even by a tenner.

asqueezeoflime · 26/07/2018 10:39

No

Horrible way to live. Did it once. One of those people that no matter how much is in the bank I don't want to spend it.

siteentrance · 26/07/2018 10:39

I can't even get an overdraft Blush

MrsTWH · 26/07/2018 10:39

When I was a student I ran up an enormous overdraft and struggled for years to get out of it. In the end I had to consolidate it into a loan to pay it off and since then have made sure I have no overdraft facility on my current account.

Grumpbum · 26/07/2018 10:39

I get charged 75p a day if I go into mine so I avoid it

Canwejustrelaxnow · 26/07/2018 10:40

It used to be normal but not now. I reduced it each month and now just live with what I've got. I guess in my 20s there were so many impromptu nights out that just do not happen now! Life is normally planned out these days boring

Mumminmum · 26/07/2018 10:40

Going against the grain here. We didn't even do it when we had an income far, far under the poverty line. But of course we had no children then and we were able bodied, so could walk instead of taking the bus. We lived next to something that kind of resembled a forrest, so we had somewhere nice to go for walks and we spent a lot of time in the library instead of going to the movies.

I think you need to have a plan to get rid of the habit with the overdraft or you will be in real trouble if you have some sort of emergency.

MrSpock · 26/07/2018 10:40

Not for me, but it would make life easier if I used it!

AWomanIsAnAdultHumanFemale · 26/07/2018 10:41

Yes for years. Plus other credit in that time. Paying out a fortune every month in credit card bills. Just trying to stay afloat.

Ifailed · 26/07/2018 10:41

I used to work in retail, and so got paid every 4 weeks. I would run up an overdraft so that on the one month each year we got paid twice, it would be cleared.

theymademejoin · 26/07/2018 10:41

If you clear it off each month and you end up overdrawn by a similar amount each month, that suggests you are living within your means but just giving the bank an unnecessary chunk of your wages.

You should try and reduce it gradually until you end up without one.

SpaceDinosaur · 26/07/2018 10:43

No

sweatingcobs · 26/07/2018 10:43

No overdraft since paying off my student overdraft and never had a credit card.

I found it really stressful constantly aware I owed money. We struggle slightly now I'm on mat leave, and it might change when I get to my unpaid mat leave,
But ideally I don't want to be in that situation again

FreckledLeopard · 26/07/2018 10:43

I always used to be overdrawn and then Barclays (who I then banked with) changed the way they were calculating overdraft, meaning I'd have been paying far higher charges each month. That was the change that spurred me into action and I somehow managed to clear the overdraft about five years ago and have never been overdrawn since.

YNAB (You need a budget) software is also brilliant and has made a massive impact on my finances.

RedDwarves · 26/07/2018 10:44

Have worked in banking for many years, and can say that it's certainly not the norm. It's not exactly uncommon, but the overwhelming majority of people do not live with a perpetual overdraft.

It's frankly a terrible habit to have. No different from living in perpetual credit card debt.

YouBoggleMyMind · 26/07/2018 10:44

I don't have an overdraft on either accounts I have so no, for me it isn't the norm. I do have a credit card but it currently has nothing on it and hasn't done for awhile.