How would you view this £300 overdraft

[NedStarksHead]

I have a Halifax ultimate reward current account, I have a £700 overdraft £300 of which is free to use, no charges whatsoever etc.
I try very very hard not to go into my overdraft, but I find it really hard to avoid.

Half of me sees no harm in going in as long as I don't go past £300 but at the same time I just don't like being in my overdraft.

How would you feel about a charge free overdraft?

I wouldn't try to never go in even the free part. If you haven't the money, don't spend it. It will only make it harder the next month

Something to be avoided using, I'd be looking carefully at my spending and look where to cut back to be £300 in the black rather than in overdraft by the end of the month!

It's free money, so a good idea if ie you're saving £300 elsewhere getting interest. But if you're using it because you can't afford to pay for things you'll never get back out of it.

same with First direct £250 free overdraft, I try not to use it also as it is so depressing when you get your pay and you only have a small balance

Having had debt problems in the past, I don't want to have an overdraft again in the future. What if the bank changes the conditions and that £300 is no longer free? Or if it gets extended, you get used to it and then your circumstances change and then it is a problem?

I think it was handy to have as even with the most careful planning there are sometimes payments which don't come out when they should, and this would mean not getting charged. But I would definitely not be using it month to month, remember you only get that extra £300 once. After that you still have the same amount each month plus £300 of debt.

It's a good safety net in emergencies but best not to count on it. I only recently had to change from my postgraduate account to a proper adult one and I used to have over £1000 free overdraft limit. They did scale it back slowly which was nice but not needed as I tried my best not to ever be in it! In fact I still have a huge overdraft limit but it's just not free anymore so I'm even more careful to not use it!

As a student I was always in it though, mostly because my loan payments were always sporadic at best and so I needed my overdraft!

It's nice to have the small cushion in the event of eg wayward payment timings but I would do my darnedest not to use it as a matter of course. Never forget that it's not 'free money' of some sort - it's debt.

An overdraft should be used as a very short term emergency buffer to cover unforeseens. You should be able to clear it within a few months.

If you need longer term finance, then you should match your asset buying against loans, i.e. hire purchase or a bank loan for a car etc.

If you are constantly in overdraft for normal spending, then you're over-spending and need to take back control of your finances to live within your means.

I would use it - like if I wanted to book some flights at the end of the month but was £100 short I would use the debit card and a portion of the free overdraft, rather than incur the additional payment charge airlines screw you with.

I'd see it as emergency money. I have a bit of free overdraft (I think it's £200, not really sure) but I would only use it if I had to. Like because the car broke down or the washing machine went kaput.

I realise it's strange but it's just a weird hang up of mine. Having debt, even a tiny amount would stress me out. Apart from the mortgage. I try not to think about that.

I'd use only in a real emergency.

I've been lucky not to have needed in since paying it back after my studies. But as a student I was forever in it, and just couldn't get out of it. It was a bigger overdraft and my part time wages didn't cover the amount so I was always in the red even after payday. These days I try as much as I can to not go anywhere near it!!
Could you cut down on some spending for a few months to save enough to get out of it?

I would only use it in a real emergency and plan to pay it off at the end of each month. if you cant pay it back at the end of the month you cant afford your lifestyle.

I wouldn't like it but if you need it, and always keep within the free allowance, I don't see harm in doing it in short-term while trying to come up with a strategy to wean self off it in long run.