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.

I have never had an overdraft, even though I've fended for myself since I was 16 and have never had a high paying job, so it's certainly not the norm for me.

Yep, had huge student one, came into a little money from relatives and paid it off, was very thankful as the bank had started charging £1 a day so felt like every time a made a payment toward it that I was going one step forward and two steps back!
Now have(had) £500 overdraft which I am reducing online every month by £10, it stands at £430 now, it’s not going to be paid off fast but it’s a little every month it’s reducing by which means eventually it won’t be there! This one used to cost about £6 a month, but recently they started a new system where it’s a percentage daily of what you owe or something- so at max overdraught it was something like 78p a day, which soon adds up over the month.

Statistically speaking, no it's not the norm. Most people are net savers. If you are going into it every month by the same amount (and not getting deeper in) then realistically it's just a debt you are rolling over each of month, and agree with pps that it's good to focus on reducing each month, even if that's £10 a month. Especially as this implies you don't have savings, so may really need the overdraft if you get a sudden boiler explosion or similar.

You Need a Budget is a great tool that helped us when we were very broke, it really is possible to make helpful steps quite quickly, even if you're generally careful with money.

I have never in my life had an overdraught...not even when I was a very poorly paid temp worker in my 20s with a mortgage.

Some of my friends bought their clothes from Next etc at that time and paid them off every month. I just couldn't live like that and would rather do without new clothes until I could afford them.

I have 2 interest free overdrafts that I drift into. They don’t charge, but I know it’s bad.

I never go into the red but I earn enough to cover my basic needs and then some. Not everyone is so fortunate.

No. I used to years ago, though.

We 've always tried to keep out of overdrafts. Not everyone can manage it nowadays, I know. We're much older than most of you.
We've been living in France, back in England now. There you negotiate an overdraft limit depending on your income. If you exceed that the bank closes your account. Other banks hear about it and won't let you open account with them.
That's for individuals. Don't know if it's the same for businesses.

I had a 5k overdraft. Took out a loan to pay it off. I’m still using an overdraft. But this time it’s unauthorised and cost me £5 a day!

No, I don’t think it’s normal, nor do I think it should be normalised.

I've never used an overdraft. Our joint account went in to the overdraft once, when I'd been in hospital and OH spent loads on fuel traveling to visit me. We hadn't even checked in the bank accounts, if I'd realised I could've moved money around to keep us out of the overdraft but I was in no fit state.

We're fairly low earners so I don't think it's always about income. We just live within our means as much as possible.

Me & my ex used to live like this, until on day the bank blocked our account because we had more going out than coming in.
It made me look at our spending (& relationship). I negotiated with debt collectors, got rid of him, took a mortgage out in my own name & paid the debts off (his included) for years I was on the bones of my arse. NEVER again will I live in my overdraft - in fact I don’t have an overdraft 😘

So, OP, you don’t think you are being unreasonable, you aren’t prepared to give up the very expensive habit that is wasting you around £100 each month, and anyone who isn’t using an overdraft is ‘smug’? Okay then...

I lived in my overdraft for a little while as I was getting divorced and trying to set up a home by myself with my son. It took me a year to get out of it. Never been in my overdraft since then. I’m married again now and husband was living in an overdraft from student days but he got out of it after about a year of us living together. I work part time he works full time we have 3 children and both have average pay jobs.

I dont have an overdraft or credit card. I live within my means

Getting into an overdraft for absolute essentials is one thing but for cigarettes? I’m sorry but if I’m smug for never being in debt then I’m even smugger for not risking my family’s financial future and my own health by spending a large amount of money on cigarettes.

No credit cards, no loans and no overdraft. If I want something i save for it, I plan ahead for kids needing stuff and only spend what i can afford.

Honestly?
Yes I think it is the norm. You just have to see the numbers form the ONS to see that now the population as a whole is in debt which means that most people either use their overdraft or CC.
I also believe that it has a lot to do with the decisions of the conservative government (benefit cuts) as well no increase in wages.
Imo the situation is dire and has got worse in the last 2 years.

On a personal level, the situation isnt as clear cut for me.
Yes we are lucky that our combined income is good enough that it makes things easier for us.
But then, there is also a lot we don’t have that are often considered ‘essential’. This is because both me and H have been raised in a very frugal way and it has stuck. Maybe this is because H grew in poverty so is always stressed out at the idea of the account going close to zero too.....
Neither of us like to spend money on ‘non essential’ things (eg neither me nor H have a mobile phone. The dcs do have one on a pay as you go basis and spend very little on them - maybe £30 a year. Cars are used until they die so atm we have a 12 and 15yo cars etc...) and we do lot ourselves (eg servicing the car, all work in the house bar the boiler servicing once a year etc...).
I am aware that a lot of people would tell us we live a very boring life due to that but that’s what is making us feel safe iyswim and therefore happier.

Only my husband earns, we don’t live in an overdraft, owe nothing on credit and aside from my student debt which will only be taken out when I start earning, we have no debt and manage to save a little each month. That’s just us and I don’t know if we are just lucky or super careful and don’t live beyond our means.

If you are able to reduce your groceries by £20 a week (one jump down and stay there not 20 thus week 40 next etc), within three months you will be out of your OD.

This can be done by going down a brand; swapping laundry liquitabs to powder, reducing prepacked snacks and drinks, etc. Obviously I dont know your usual grocery budget or brand/food preferences, but groceries is usually peoples biggest weekly spend so a saving can often be made here.

I don't have an overdraft nor a credit card. Having been left in deep debt once and having fought like mad to get out of it, I would never choose to owe money ever again. It would do my head in to think my salary, meagre as it is, was spoken for before I even got it.

I've never had an overdraft even in my hard up days. I was bought up to think if you don't have it in cash then you don't buy it.

Never had any credit cards, loans or overdraft, and I'm not from a privileged background, although life has been kind to me financially as an adult.

Not at all. My husband earns good money and I am constantly in my overdraft. My husband clears it, then I pay all the bills again and I’m back in it once more. Every single month for the past 5yrs probably 🙈

Most people in the UK don't have an overdraft but 25% only last 17 days after pay day before going overdrawn so it certainly varies. I have never relied on a credit card nor used the overdraft other than a day occasionally even when full time childcare cost 50% of each of our net full time salaries. I have no debt.

i was scanning university papers recently and even when I was 17 I had a little note book with every penny spent including a bar of chocolate written down and what that left me with. I think it is a personality issue as much as how little or how much money you have. our children's baby clothes were second hand etc and my daughter says even her cloth nappies were second hand although I dispute that one.....

I’ve never had an overdraft. About 10 years ago I had an appointment at the bank to discuss having an overdraft when I started my first job after finishing school. I’m glad tbh as I know seeing minus figures in my bank account is incredibly stressful for me after accidentally going into my informal overdraft a couple of times.