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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:
adaline · 26/07/2018 11:34

On these threads, anyone who's never been in debt, or is now debt-free is automatically referred to as smug, for some reason.

Overdrafts do have their uses and I do have one, but living out if it every month is not the best way to live. Most banks charge for overdrafts now (unless you're a student) so you're paying extra to be in debt. Of course in some cases it's completely unavoidable but OP could pay hers off in three months if she was desperate enough.

There's a difference between being so broke that you have to go into your overdraft to feed your kids/pay bills, and choosing to overspend by spending £80 a month on cigarettes (or the pub, or lottery tickets, or anything else unnecessary).

Original poster
user1490465531 · 26/07/2018 11:37

I am increasing hours at work which will give me more disposable income so that should help.
I can see that living in overdraft is not the norm so I need to really budget to clear it.
August is a hard month as dd of school so spend more money but September will be a frugal month for me!

OP posts:
MaisyPops · 26/07/2018 11:37

Not the norm here either. I'll sometimes use it if there's been a heavy month (like needing a big purchase) but otherwise I keep out of it.
I like the option of having it there as an easy access float if we need it though.

I also don't see why saying it's not the norm is smug either.

I had a time when i was using it a lot (only by a couple of hundred a month). I have a friend who is always on about how much they are in theirs. I got out of mine by making cutbacks. They are still in theirs and still give themselves regular treats like lunches out etc (often accompanies with 'well when you haven't got much you can't do big treats so the little things are nice'). Their little treats (coffees, lunches out, nails done) add up but they will complain they are so broke their shop had to be £20.

PuntCuffin · 26/07/2018 11:38

No, I don't consider it normal. And I am not smug. Or a bitch. Just very, very careful. I am also in the SE, haven't had a proper pay rise in about a decade, so have to be more careful all the time.

SimonBridges · 26/07/2018 11:40

For a long time it was normal for me.
Not now as I got out of it but it took a long time and ultimately because I retrained and now earn 3x what I did.

When I was always overdrawn I accounted for every single penny and still couldn’t get out of it. All this guffing on about live on value baked beans and walk everywhere doesn’t help when you are already doing that.

crunchymint · 26/07/2018 11:43

maisypops Totally understand the need for treats. But all those really add up as you know. Moneysavingexpert forums are I think brilliant at supporting people through clearing debt.

Larasshadow · 26/07/2018 11:43

Definitely not the norm here, if I can't afford something then I don't buy it.

I understand that it is extremely difficult to stop using your overdraft if you use it every month and you have nothing left of your wages after paying it off.

Before having children I would literally spend all my wages down to the last few pounds in my bank but there is no way I want to be like that again. Quite happy living off value range products and not having expensive phone contracts etc as that meant we have actually managed to save a little bit each month.

Original poster
user1490465531 · 26/07/2018 11:44

Exactly SimonBridges.

OP posts:
theymademejoin · 26/07/2018 11:44

@user1490465531 - Oh I know there would be the odd smug poster but I just ignore them anyway.

I haven't seen any smug posters. Just posters who shared their attitude towards debt and overdraft and said what they would do in your situation.

Comments like that, and some of you previous comments, suggest that you simply want validation that living on an overdraft is the norm (and in fairness to you, that was the question you asked). Posters (including me) obviously misread your post as asking was it the norm AND a desire to get out of that cycle of debt with an interest in hearing suggestions towards that end.

I apologise for giving you suggestions.

In answer to your original question - AIBU to think unless you have a fantastic paid job you will living in your overdraft., yes, I think you are unreasonable to think that. Most people don't live in their overdraft but quite a number do.

c3pu · 26/07/2018 11:44

When I was in my first job I was regularly in my overdraft. I'm now on an average income with a house and 2 kids, and I'm nowhere near my overdraft.

crunchymint · 26/07/2018 11:45

Simon Moneysavingexpert forums do help people who are already very poor, pay off debt.

LoveInTokyo · 26/07/2018 11:46

I used to be overdrawn as a student and for a few years after graduation. Haven't dipped into it in at least 5 years though.

bigKiteFlying · 26/07/2018 11:46

It's startng to be every month I dip in - worryingly it's earlier and ealier. It clears - but bouncing in and out and money comes into accounts or leaves to cover credit card.

I used to have savings to cover unexpected things - they've gone.

It's mainly around the kids things - school, groups activities - sudden demands for money usually when I'm already close to the edge or I get int it and stuff keeps coming that has to be paid for.

I'm hoping better money tracking will help - I keep trying to build some savings back up. I don't get charge very much as it's one pre arranged one but I would be stuck it the facility suddenly went - it's reviewed annually.

I don't have standing creidt card debt - it's cleared every month and some months nothing on there - I used it to spread expensive things out - smear the payments out acrossfew months.

I'm hoping secondary school may help a bit - the demands are higher in value but more predicable.

Ionlylookatthepictures · 26/07/2018 11:46

Not exactly, but usually am about £100 o/d at the end of the month. It doesn’t bother me massively - it costs little in bank charges and we’ve saved in excess of ten grand so far this year with holidays and new car paid for outright so I don’t sweat it as massively indicative of my financial situation!

Snowysky20009 · 26/07/2018 11:47

No overdraft or credit card.

Used to have a 2.5k overdraft, but worked hard to get out of it and changed my bank account, and after paying off my credit card I chopped it up! Best thing I ever done!

PinguForPresident · 26/07/2018 11:47

I don't think it's the norm, but I think it's quite common.

Our family income is considerably less now than it was 10 years ago before we had kids (I left high-paying job to retain as a midwife), and our family is twice the size it was! We went from spending whatever we fancied, to having a small, set cash budget each week and selling anything that wasn't nailed down to make ends meet.

The 3 years that I was training were godawful, and although I'm coming up to a year qualified now, we don't feel much better off as we're having to use the my salary to do all the things we put off while I was studying (replace dangerous kitchen, re-do rotting bathroom etc). But we don't go overdrawn. We use pretty much every penny we earn, but no more. I am a demon budgeter, every meal is planned, we waste nothing, I sell on everything the kids grow out of, and buy "new" stuff second hand.

Living on a reduced budget is a hell of a skill, and even as my pay rises (not by much, midwives are woefully underpaid!) I get really jittery if we spend too much, or overrun the weekly cash budget.

Original poster
user1490465531 · 26/07/2018 11:49

Some posters have a habit of talking down to you even if they don't realise it.
I don't want to come on here for a fight as I said I've accepted it's not the norm and appreciate the helpful advice I've been given.

OP posts:
SlartiAardvark · 26/07/2018 11:49

Oh I know there would be the odd smug poster

No smugness here, just never had an overdraft....

I hate being in any sort of debt, nothing on HP, credit card is for emergencies or work trips only - only debt we have is the mortgage.

Personally I couldn't sleep otherwise...

BrokenWing · 26/07/2018 11:53

I used to live in my overdraft when young/first left home and I didn't manage my money well. But overdrafts were promoted as free then to encourage customers so not a big deal.

As soon as they started charging fees for overdrafts I planned to stop using it as the fees were high. If we needed something at the end of the month we would use the credit card and pay it off the next month before interest started and/or do without. It was tough and took a few months to budget each month to £0+ rather than -£100.

We are fortunate we aren't living hand to mouth anymore and not sure if they still charge as much for overdrafts or if I even have an overdraft facility now.

Eggzandbacon · 26/07/2018 11:53

I used to and it caused me huge stress.
So I stopped spending and made small targets to pay it off - going from £1500 overdrawn to £1000 and then promising myself I would never go into it again.
It took about 2 years but I am now £2k in the black in my account and I try not to dip below that as my minimum.

Retraining the way you spend money helps, I am naturally frugal now and I realise I wasted a lot of money on nothing.

LoveInTokyo · 26/07/2018 11:55

I think the advice to try and be slightly less overdrawn each month than you were the month before is a good one.

Eventually you will arrive at zero and then you can work on having a certain minimum balance in your account at the end of each month.

As ever, pay off your most expensive debts first.

bigKiteFlying · 26/07/2018 11:56

When I say I have no savings.

We have holiday fund and house/emergency funds and children savings but don't dip into them for everyday/monthly expenditure. We are overpaying the mortgage. So not as dire as no savings.

I used to have money in my saving accounts - so if their shoes broke - I’d dip into that rather than overdraft. I don’t get charge a lot though – but couple of years ago going into over draft never happened.

Possumfish · 26/07/2018 11:56

I wouldn't say it's normal, but I know people who do live that way. Ive not been in my overdraft since i was a student. But some of my friends live in it.

PumpkinPie2016 · 26/07/2018 11:58

Not normal for us - we don't have an overdraft. I am a teacher, DH works part time as a gardener so he can be there for ds. So, not loaded by any means.

We are careful with money though and don't take out credit for anything - even cars, we save up by putting a bit aside each month into savings.

My parents were not good with money and lived in the overdraft/on credit. I couldn't cope with the worry of it.

thatmustbenigelwiththebrie · 26/07/2018 11:59

I am never over drawn but we live in a shit area deliberately so it's cheap and I am also very boring and never buy anything.

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