To think living in overdraft is the norm?

[user1490465531]

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.

No. I don't spend money I don't have, so I've never used an overdraft, even when I was a student. It's a slippery slope spending money you don't have!

No I've never had one.

I used to be. Hell i used to be at the max of my unauthorised overdraft every month. I also had payday loans and credit cards and every payday was a stressful juggling act to pay some off and then take more out to actually live on.

I only got out of it by going on a debt management plan (a step below an IVA, I think it’s voluntary and they don’t write iff debt just freeze it and arrange affordable repayments). I’m now about three years debt free (apart from student loans) and can’t get credit even if I wanted it but I’m very grateful to no longer be in that particular pit. But I wouldn’t have got out of it without the debt management plan because fees and charges spiralled out of control.

I full accept that I made my situation worse with payday loans. But I had an authorised overdraft of £1,750 left over from my student days, I was earning about £1000 a month, I was never going to clear that overdraft

Honestly I think interest free student overdrafts are a terrible idea. There’s no affordability testing and obviously when you graduate they start charging interest and fees. I wouldn’t be surprised if it becomes the next financial scandal when the PPI claims dry up (either that or all the companies that “managed” people’s PPI claims unnecessarily and took a big chunk of their money).

Sorry, I went off on a tangent. If I had an overdraft I’m sure I’d be in it every month. Which is why I’m glad I don’t. Don’t get me wrong, I go right down to the wire by the end of the month! But at least I’m not being charged for the privilege. Unless you have a windfall of some sort, or you only use it for a one off expense, it’s incredibly difficult to get out of it and stay out of it.

Considering one in four UK adults don’t even have £100 in savings, I would say that millions of people go into their overdrafts.

We have an overdraft facility but have never used it.

Your overdraft is small so you could easily get rid of it. Some people view overdrafts as money they can use when their salary runs out. It has a knock on affect to the following month though.

Smoking is an expensive and unhealthy vice. Why not try and give up or cut down?

ItsAllGoingToBeFine thanks

I don't have unsecured debt, but I do budget each month by writing down all bills and ticking them off as they are paid, withdrawing spends in cash and never using the debit card, saving a small amount each month so I have a buffer. I'm not smug, I just don't spend money I don't have.

I don't know anyone in my group of friends who rely on an overdraft like that, but then again, we're not single parents and don't have the responsibilities you do.

Someone earning 30 grand a year will be able to live within there means a lot easier than someone earning 15 grand

Of course, but you have said you are spending £80 - 100 a month on cigarettes. Now, as your debt is only £200, it's not rocket science to see how easy it would be to not only gradually cut your overdraft down, but potentially begin to build yourself a small buffer of savings. I'm sure completely stopping wouldn't be easy, but, if you really wanted to not live in your overdraft every month, it's a pretty easy to see where you could make some savings. Most overdrafts charge you too - so if you just made that small adjustment, you wouldn't have to hand over ££ to the bank each month either.

A lot of people you are calling smug, are people who don't like having debt, and would spend on their 'treat' (whatever that is for each individual) with money they have left at the end of the month. So, if no money left, then it is a month without that treat. Doesn't make them smug, it means they don't like being in debt, and paying out interest, or bank fees each month, when it seems that month by month you are living within your means.

I don't have a credit card or overdraft. I also have it with my bank where I carnt go into unarranged overdraft. It's difficult but manage. I've got about £5 to last till Tuesday but luckily I've food in the house and not at work this week.

I am never in my overdraft, we use the credit card for everything but as soon as the bill comes in it is paid. Admittedly there are two of us but our jobs are soooo not well paid and we live in an over priced part of the country so our mortgage is high and we have 3 kids. We are however, lucky enough to have found jobs that fit well around the kids so childcare isn't an issue.
Some people have it tougher I agree, not everyone in their overdraft has much of a choice but I do have friends who claim to be struggling and who i know are in their overdraft whilst constantly going out for meals, smoke, have the full sky package and both have expensive phones and a huge tv. Fair enough if that's what they want but it's pretty obvious why they 'struggle'

£2k I'm mine and have been since uni. Trying to get out is hard when my monthly wage doesn't even get me out.

I would imagine many of the pious financial experts on here have bank loans for other stuff, credit cards and store cards.

A credit card is only bad if you are paying interest on it. I get 1% of my spending back in the form of vouchers on mine, as well as extra protection when making purchases and a range of minor benefits, such as free transport of my suitcase to the airport.

Not for me - I haven't had an overdraft since I was in my first year at university

Not normal for me either.
My dm is an accountant though and I was brought up VERY financially aware. I was lucky coz it meant as an adult I've never had debt.
I did go overdrawn by 16p about 7 years ago (near Xmas and wages weren't paid the day I thought they were day after) bank wanted to charge me £30 for 16p?
I phoned them up explained the situation and I've never done it before and the dropped the £30.

I can't even do the math on that but that's a stupid amount to owe.
I know friends who keep putting things on their credit card saying oh it's only £20 but by the time they've paid it off it would cost them about £80. Then pay day loans on top

I DO understand how easy it is to get into debt even if your careful butfor those who just see credit cards / overdraft as extra money for them not a loan this is the issue.

I think in general more help is needed in school before they can get debt if that makes sense?

I think that posts like ‘no, I manage my money’ and ‘I live within my means’ come across as hugely smug.

I'd say that it's your insecurities creating that perception.

The norm is to not use an overdraft as a regular fallback. So not using it isn't "smug", it's "normal".

OP
I was in a proper pickle financially in my 20s, with credit cards, two big loans and an overdraft. You'd never believe it if you saw me now, ten years on, and it's a total shift in mindset. It's so bloody hard paying off debts that have arisen from day-to-day expenditure, because firstly, you have to live within your means, and secondly, you need to live below them to clear the debt, so a double hit!
I cleared mine by camping out on the MSE debt free wannabe forum and going hard at clearing the debts, no half measures or treats for quite a while.
YNAB is excellent (if annoying, because you can't escape it!).
I also highly recommend this article, which stayed with me: www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/

I'd say that it's your insecurities creating that perception

Why? I’ve got no debt and I live within my means.

I think the last time I was overdrawn with my bank was about 1976 when I was in my late teens. It was such a shock to me that I reined in my spending and vowed never to let it happen again - and, so far, it hasn’t. I've come pretty close a few times but I am fortunate to have built up some savings over the years, so I dip into those when I have to.

Agree Simon. Comments like ‘I prefer/choose to live within my means’ ‘I manage my money’ are lacking in empathy. I am also financially secure (as far as self employed business owner can be) and was more well off when I had my massive (to me) £5,000 overdraft. I have a nominal ‘buffer’ overdraft nowadays that I’m fortunate enough not to have to use.

The sad thing is a lot of people that are coming of smug do not even realise it which means it's probably just their personality in general low on empathy and lacking understanding in general.
Sadly there are more people like this in society in general.

Why? I’ve got no debt and I live within my means.

Ah, so you're smug too, but you've actually managed to double your smugness by being smugger than the people you were calling smug.....

The sad thing is a lot of people that are coming of smug do not even realise it which means it's probably just their personality in general low on empathy and lacking understanding in general.
Sadly there are more people like this in society in general.

To be fair mate, you're coming across as being a wee bit dense & entitled.

Listen to the advice given (by people who have been there) - stop whining, pull your finger out & take control, stop smoking & try to live within your means - it's actually not that hard.

Slarti that really doesn't make sense.
Your really scraping the barrel now.

I'm £900 into my overdraft. This seems like an impossible task to get out of. I'm single so no second income coming in. Society seems designed for couples. Outwardly I have an ok wage (teacher) but when you take away money for morgage, utilities, council tax, broadband (essential for planning in job), phone, food, car etc there's not much left and sometimes less than nothing left if something happens e.g. having to get a plumber out. It soon builds up.

I'm taking on a second job just to get by. Don't know how I'll do it as a full time teacher. Also trying to rent out my tiny second bedroom to help.

I'm stressed to hell with it all to be honest. I'm selling what I can but there's not much left. I hate that this will be my life.