To ask if you have an overdraft?

[ohflowerofscotland]

I've been with my current bank for 7 years but have never had an overdraft.

Money is really tight this month and I'm thinking about applying for one (wouldn't be much, just a couple of hundred ££s).

Are they a bad idea?

I meant it’s better than going into an unarranged overdraft not a I arranged overdraft x

Thanks everyone, it's just an overall dire situation struggling because the father of my DC left and now I'm completely on my own.

I’ve been in my overdraft for 15 years!! I don’t really think about it, I just look at my available balance when I check my account! It probably isn’t ideal but definitely not the end of the world

Speak to your bank, mine offered a free overdraft facility for the first three months as I had been a customer for years and never used one.

I have £600 pound overdraft. Its a buffer but havent actually needed to use it. I also have a credit card with a £500 limit.

Who do you bank with op?

It might cost next to nothing to arrange a small overdraft to tide you over as many banks have completely free overdrafts for a few hundred pounds. Just give them a ring and ask - you might even be able to apply online.

People on here are weird about credit cards and overdrafts. Used responsibly, they can cost nothing and even make money and provide other advantages.

Fine, everyone should have thousands of pounds tucked away in case of emergency, but the OP doesn't right now, so a small overdraft will enable her to buy food and is not necessarily the slippery slope to bankruptcy.

I've had an overdraft facility up to £500 for years. I don't use it every month, I've never gone over the agreed limit, and when I do go over, the fee is usually less than £1. It saves me worrying about messing things up at the end of the month, going slightly over, and then being charged £20 for a letter telling me I've gone over.

What I would NOT do is use one as a form of loan. That can get very costly.

I bank with Lloyds. I can apply for an overdraft online

I have one and I wish I didn't, although I didn't have much choice when I took it out.

What I would say is that it is certainly better to have an agreed overdraft with a reasonable interest rate than to accidentally go into the red every month and get charged a daily fee for doing so.

İ had to get one a few years ago out of desperation as something out of the blue happened and i needed it.

My income then changed and i am still stuck in it. However i can re apply for a new limit on my over draft so when my wages go into my account i apply for a new over draft but less than what i have so i effectively i am applying to reduce it and i do so by £20 a month but you can only do so while you are in the plus l. İt's taking me ages but better than it was at the begining

I don’t have one no as I have a 0% CC for emergencies. I don’t have any savings though. There is about £200 on the CC which I pay off this month and then it will be clear

But I understand you are having issues with finances it’s just not a long term solution

It’s better than a payday loan though

I have a £500 overdraft and have done for years. I rarely use it but it's nice to know if I need something in the last couple of days before payday it's not a huge issue of trying to find some money.

I have a £1000 arranged overdraft but hardly ever use it,
I like knowing it’s there though incase of a short term emergency.

I'm Halifax btw not sure if you can do that with Lloyds. Check first befpre you decide anything. And look into 0% cc

I had one. I wouldn't and don't have one now. The bank were falling over themselves to give me credit as soon as I was 18. Mine was very small, maybe 150, but my (now ex) friend had one at one point that was more than her monthly wages. Fuck that for a laugh. They are a vicious cycle IMO.

Sorry, meant to add that, as others have said, there's quite a difference between having an overdraft as a loan you never really pay off and having an overdraft facility available to you for emergencies simply to avoid getting charged a fee for going a fiver into the red the day before pay day or something.

Everyone on MN seems so sensible, most people I know have an OD!

I am only sensible now because I spent 20 years in debt!

A very small arranged overdraft as a buffer isn’t the best or the worst idea.

I have one for £150, which I stray into a little bit maybe once or twice a year.

A 0% credit card can be a better idea, but only if you know you won’t be tempted by it. The credit limit on a card would likely be higher than on an over draft, so it could be more debt. And the interest free period could come to an end before you’ve paid it off.

I have an overdraft for the amount I pay for the bills and mortgage. I don't get charged because my account is always in the black by close of business but it means that on the days work pay goes in and bills come out on the same day (not always, maybe couple of times a year) I don't get things bouncing etc. I'm not sure if they would but it makes me feel safer knowing the buffer is there. I've had this all my adult life really, varying the amount dependant on rent at the time etc. Basically I can administer that easily online vs the myriad of direct debits and standing orders. I thought everyone did something like this as my parents did it too. I have a credit card for emergencies but don't routinely carry it.

I used to have a £1k overdraft but it got to the stage that when my salary was paid in & my direct debits went out I was having to use the overdraft for the rest of the month. I got a loan, paid off my overdraft & swapped my bank account to a basic one with just a debit card, I have never been overdrawn since, I know exactly how much money I have available & manage on what I have.

I bank with First Direct, I have the standard £250 fee, hardly ever used, but it is free.
OP, don’t do it. £30 can stretch if it’s just for food and it’s only temporary. A big dish of macaroni cheese with broccoli and sweetcorn should last 3-4 days.
Some baked potatoes with baked beans.
A big pot of soup.
I’d call it campfire food and turn it into a game.
Sorry you’re struggling. It’s hard in the beginning but then you adjust to a free and happy life. Hope you’re being kind to yourself. Big hugs.

I have an overdraft of £500, it came with my bank account.

I sometimes accidentally go around £20 into it at the end of the month but in general I don't like to use it.

Yes £9000. Got it to do some work on the house. After about 8 months we are only at about -£500 by end of the month and should be back in the green in a month or two.