What does exceeded overdraft limit mean on a bank balance?

[Ineedcoffee28]

Can someone please help me understand what it means when a bank account says "exceeded overdraft limit" with -£2000 as a balance. I havent lived in an overdraft and i dont have any debts so i just manage in my own little way.

I have just been sent a screenshot from my childs father. He has failed to pay his monthly child support.
I saw the amount with the minus and am thinking he must be struggling.

Im guessing when he is paid his wages it clears?
Sorry if i sound really thick, i dont understand overdrafts.

Obviously this has an impact on me due to not getting any child support. Does that seem like alot?

The minus 2000 is the amount he owes the bank, he has spent £2000 more than he has had in his bank account. The overdraft limit being exceeded means that his allowed overdraft is less than £2000, so he has gone beyond what he is allowed and will be charged a fee for that.

When he gets paid, the minus 2000 will reduce, depending on how much he gets paid.

Exceeding overdraft limit just means he’s exceeded his authorised overdraft limit on his account and is now into an unauthorised overdraft, which will be incurring charges. And yes, when he gets paid (depending on the amount) the overdraft will potentially be cleared, but as he spends money throughout the month he probably goes back into it again. Overdrafts are a vicious cycle, and very difficult to get out of once you’re in them.

Yes, it is a lot to be two thousand pounds into your overdraft. He will be charged interest on that amount, which will add to the debt.

That's a big overdraft but he didn't send you a screenshot of his other accounts. He may have decent savings but is choosing to play the victim and not support his child. Guessing he was a bit manipulative when you were together. Hope you are ok.

If he gets paid £2000, he will be back to zero, but then have fees to pay. He will then be below zero again. As soon as he spends anything it will keep going down. He needs to speak to CAP or similar. I hope he gets sorted out.

Just means that what ever his agreed overdraft is - £10, £100, £1000… he has exceeded it. Ie if it is £1900 he has exceeded it as his balance is now -£2000.
He will likely pay a daily fee on exceeding it and a higher interest rate on the amount above the agreed - so if it was £1900 at 4% interest, but 7% interest on unauthorised overdrafts, he will accrue higher interest on that amount and and probably a daily charge. He won’t be able to access any further monies now until he has repaid and is within the agreed limit. It will also affect his credit rating negatively.

The agreed OD is usually stated at the top of the page somewhere to indicate what he was allowed.

As others have answered most, I’d add to your “is it a lot” query, that depends how much he gets paid and on the circumstances.

If he gets paid £1800 a month then yes, it’s a lot.

If he gets paid £8000 a month then less so.

Thankyou everyone, that makes plenty of sense.
I dont have reason to believe he has another account but could be wrong.

I hope it isnt an excuse to get out of paying child support. We live two different lives, he has no involvement however it would sadden me to know he is struggling financially.

Do you have a private arrangement op or go via CMS.

Paying for your child should be a priority and if he is not managing this on his own you may need to go via official channels so at least his debt accrues.

We use the cms but they have decided it would be best to use direct pay.
He has paid late quite a few times,
im not sure if i need to be sympathetic with his situation. It doesnt look good.

You can report that he has failed to pay so that they record it at least.

How would he respond if you warned him you were going to do so? I assume he would rather not go to direct pay? Might motivate him not to overspend next time??