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.

Yes normally the week after payday! I had a huge 2000 overdraft with NatWest and worked to pay it off, switched banks and was given a free 500 one! Really didn't want it but decided to never extend it ever again! I have never had a credit card though.

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

Same here.

Honestly some people here are relatively okay off financially. It is much harder to get out of debt when it means sitting in the cold at home and eating unbuttered toast and 19p noodles for meals to get out of debt. I have done this, and it is hard.

I’ve never had an overdraft but DP is almost permanently in his. I think his overdraft is 1.5k so on payday he won’t have much left that’s actually his money, it’s all overdraft. He got into it travelling years ago and has never managed to clear it.

Yep every month we're in our overdrafts but we've been doing our house up now it's finally coming to an end hoping to put £50 a month away to build it up and pay it off in one lump sum and have it at just £150 for emergencies.

I see debt as an oh well we're not extravagant people and everything is so expensive these days it's just part and parcel of life.

Who cares whether pointlessly giving your money to the bank is “the norm!”

I’m not going to do it.

When I opened my account I specifically stated that I didn't want an overdraft.
I've seen with my parents how easy it is to overdraw and not be able to pay it off, so I never wanted to be in this situation.

I think in my whole life, I have overdrawn twice by a few quid, both times I paid something early in the morning and my salary was in the account later that day.

crunchymint
But for the vast majority of people with an overdraft it isn't a case of scrape 19p together to get noodles.
It's extra spending money that people use and could get out of but don't want to make cutbacks.

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

Bit snobby! Money saving expert is great. It has helped us with loads of money saving and paying off debt/getting best offers etc and we are certainly not poor.

It’s not my norm, and hasn’t been since student days.

But it’s not always easy.

I get charged £1 per day for using mine. It really annoys me that they charge for using it. Especially if I just went over by a few pence by mistake.
Mines only a £100 and out of principle I don't use it. I suppose it's handy if I've miscalculated and bought something that cost more than I have in my account.....and it means my card doesn't get declined for the sake of a couple of quid.
When I was younger I used to every month.
I do have a small amount of savings now and I'd rather dip into that needed than use the overdraft.

No. And I don’t know anyone who does. Just average wage jobs. We budget.

Op - agree with those who say you need to quit smoking. You spend £80-100 a month on smoking, and you can't afford it. (Plus the standard reasons like your health, appearance, and personal smell will improve if you quit).

You are a single parent who is in debt every month and can't afford to save, you can't afford an expensive "hobby".

My dh's overdraft charges would come out the day before payday and would always take him overdrawn for the next month, or even over his overdraft limit (he was shit with money back then). I suggested he change the date his charges were taken out to when he got paid and it was the hardest thing to do! Passed round about 5 people. The banks know exactly what they're doing.

I'm overdrawn, but it's the only financial burden I carry.

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

Those of you who use YNAB, is it really useful? Couldn't you do the same on Excel?

We are living in our overdraft but purely he abuse my husband makes very poor finacial decisions.

I used my overdraft as a student, but haven't touched it since then. I think the most I ever went into it was about £300, and that was as I waited for my first set of wages after I graduated. Getting out of it was my first priority as living like that terrified me.

I think it's much more prevalent than it should be though.

I got into my over draft whilst on maternity leave and also when paying for our wedding, so I'm with you OP it's the norm for me. I too live in the south east and my living costs plus travel on the very expensive trains to work really eat into my salary each month. It may be easier in cheaper parts of the country or if you don't have unavoidable outgoing like £15 a day for overcrowded train travel!

Bobbydeneiro nope..... I don’t have an overdraft, store cards or loans (except mortgage). I have one credit card that isn’t paid in full every month. This is because of costly mistakes with debt many years ago and I now budget very very carefully to avoid debt.

I don’t see why people who are careful with their money and spending and budgeting are ‘smug’ ‘pious’ or ‘holier than thou’ why is beint financially secure a bad thing?! People are just sharing their experiences and feelings. God forbid people don’t want to be worrying and in debt 🙄

I used to do this then one day I got really fed up with it, I’d live in my student overdraft for about five yrs after I graduated. I asked the bank to reduce the limit by a bit each month to help me get out of the habit and pay it back. These days I occasionally go into the £20 buffer overdraft but I don’t have an agreed overdraft and can’t see myself applying for one again, . Feels much better than the money I get paid is actually mine every month!

MN is full of playground thinkers.

report a crime? 'grass'
steal from a big company? that's ok.
drop litter? Everyone else does it?
don't waste money? 'smug'.

CBA with this thread beyond that.

No, we live within our means.

I don’t agree that’s majority opinion on Mumsnet.