I wish I had never…

[GMC AdminKeymaster]

Used my overdraft. Once you have started using an overdraft, it is very difficult to stop. I started using mine years ago and treated it like it wasn’t borrowing, but just the natural state of my account. I dread to think how much interest I have paid on this over the years – probably more than £1,000.

[CatherineParticipant]

I have the same issue. My overdraft is no longer a short term buffer, but where my personal finances exist 99% of the time. It’s almost as if every time I claw back out of the red, there’s a birthday, or Christmas, a vet bill, a car bill or just any little unsuspected something, and there you are, back in the overdraft for the forseeable!

[RebeccaParticipant]

Every single month there is an unexpected something! I just posted about that in a different forum… no such thing as a “normal” month… ever.. but hard to allow for the unexpected as you would probably end up spending absolutely nothing.

[MichelleParticipant]

Last time I opened a new bank account I refused an overdraft and it worked, if you don’t have one you can’t use it!

[RebeccaParticipant]

That’s a very good idea – pretend they don’t exist at all! The tricky part is if you are in one, how do you get to that stage – is it worth taking a loan, for example, to pay off the overdraft? Then you could pay off the loan in managed instalments. Less expensive debt to pay off the expensive debt….

[Author]

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