Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Cost of living

Stretching your budget? Share tips and advice to discuss budgeting and energy saving here. For the latest deals and discounts, sign up for Mumsnet Moneysaver emails.

Flip

Original poster

Worried that bank will cancel my overdraft?

21 replies

Liley123 · 15/12/2018 13:04

I have a £900 overdraft, work full time, get paid a salary every month but i live in my overdraft. The yearly review is coming up on my overdraft and i'm wondering what makes a bank cancel an overdraft?

OP posts:

dementedpixie · 15/12/2018 13:05

Do you ever come out of overdraft at all?

ScreamingValenta · 15/12/2018 13:06

How much is your salary compared to the amount of your overdraft?

ScreamingValenta · 15/12/2018 13:06

... and do you have any other lending with the same bank?

madmumofteens · 15/12/2018 13:07

I'm sure it's just a review to try and sell you products!! At one time we had a £1200 overdraft I phoned the bank at the beginning of every month asking them to reduce it by £100 each time I've never had one since it's depressing seeing your wages disappear xx

Original poster

Liley123 · 15/12/2018 13:07

I do when i get paid then i'm back in it again a week after. I got paid roughly £1,200 a month. I don't have any other lending.

OP posts:

Original poster

Liley123 · 15/12/2018 13:09

My bank is Halifax btw.

OP posts:

Frenchfancy · 15/12/2018 13:09

Banks like people like you, that is how they make money. It is not in their interest to remove your overdraft.

10PollyPockets · 15/12/2018 13:15

They can't just remove it because it would push you into financial difficulty. I would suggest asking them about a repayment plan to see if you can reduce it monthly. Even if you paid 10-20 a month on top of your interest and charges it would start to get it reduced. I'd still keep a small overdraft for emergencies but to be honest because of the nature of overdrafts they are very difficult to repay and it can work out very expensive if you add up the charges.

ScreamingValenta · 15/12/2018 13:16

It doesn't sound an excessive overdraft in relation to your income. Perhaps you could budget to bring it down gradually next year, say £50 a month - that would save you worrying in the future and would save you paying so much interest on the overdraft.

MissMalice · 15/12/2018 13:18

My old bank closed my overdraft without warning. When I rang to ask for it to be reinstated they said they couldn’t and they also couldn’t explain why it had been removed.

Original poster

Liley123 · 15/12/2018 13:18

Do you think they'll cancel it then?

OP posts:

Original poster

Liley123 · 15/12/2018 13:44

Someone please help me I’m so stressed :( do you think I should call the bank?

OP posts:

ScreamingValenta · 15/12/2018 13:45

Only your bank can answer your questions, so if it's preying on your mind, calling them is a good idea.

onyabikeivy · 15/12/2018 14:03

I used to carry out reviews for another bank... I'm 99% certain they would not remove your overdraft, from experience they won't remove your over draft unless the account doesn't get used and it was getting larger because of charges and no money coming in. Sounds like you're fine.

italiancortado · 15/12/2018 14:16

Start to reduce it by £50 a month.

Original poster

Liley123 · 15/12/2018 14:22

Just rang them and they said there’s no note on my account to cancel it. They said they’d only take the overdraft off if circumstances changed and I couldn’t pay it back at all so it’s really made me feel better :)

OP posts:

ScreamingValenta · 15/12/2018 14:23

Really glad it's all OK, OP!

moanymandy · 15/12/2018 14:33

They would definitely give you notice usually around 4weeks if they were planning to remove it.

Don't ask them for a repayment plan as this will show on your credit file as an arrangement. They shouldn't do it anyway if you are initiating the reduction.

You should be able to manage your overdraft using your online banking, you can reduce it yourself every month to help bring it down.

Fairylea · 15/12/2018 14:37

We are always, always in our overdraft. We are with Halifax. They’ve never ever cancelled or reduced it. Why would they? They make £2 a day from us having it.

Yep, I know we need to sort out our finances but that’s another thread!

rememberatime · 15/12/2018 14:45

I was in overdraft for an entire year and occasionally went over it. The bank have a special department that talks through your financial worries and will help you in any way they can. They have to do this legally.
The person I spoke to was so understanding and understood it was a temporary issue (until my house was sold). They even removed some charges when it was clear the fees were the only thing pushing me over the overdraft and putting me into a spiral of charges.

I would contact them on your payday every month and ask them to reduce the overdraft by £50. This way you are paying it off at your own rate.

camogirl · 30/12/2018 10:06

Banks have to review overdrafts every year as part of the new banking regulations that came in. They don’t have a choice. This doesn’t mean they’ll cancel overdrafts, It’s just wan obligatory ‘review’ which generally means not a lot other than complying with current regulations.

Flip