Could You Live Without Your Bank Overdraft?

Having always lived within my means I haven't ever used my overdraft facility. I think it's too easy just to spend, spend and spend without thinking about the consequences and the realisation when you get the bills in that you haven't any money to pay them must be a nightmare. I want to sleep at night not be afraid of what the postman might bring.

Have never used an overdraft personally, would rather wait until I can afford whatever it is.

I have one but have never used it :)

We seem to be prety much in agreement on this.

I'm firmly in the 'Don't get it until you can afford it' camp.

Never used it CS, I'm happy to say.

My current account has a £1000 overdraft facility, but I don't use it, so yes - I could (and do) live without it.

If you think about it, using an overdraft facility to its full limit is like a payday loan all but the same high level of interest. Once you are deep in the O/D zone, you pay check may just rise you above it leaving you with yet another bereft month. And if that's your lifestyle, getting out of overdraft can be a mammoth job.

I would prefer banks to have separate 'draw down' zones of say a £1000 that you can call on in an emergency leaving a debt in a completely separate part of your account and become repayable from the current account at a pre-chosen rate every month so you maintain cashflow but also control and repay in a discipline manner, the debt. It could of course be cleared at a faster rate should finances permit.

Overdrafts are nothing less than living in 'negative account' equity and should be limited to say no more than 20% of your nett monthly income to minimise use and the long term damage that they can cause. What is the point feeling comfortable about constantly living in an agreed overdraft zone when it it debt, pure and simple.

To be on top of this, everyone should simply look at the last £200 in their account as a personal 'buffer' zone and stray into it at your peril. All I am suggesting is that everyone moves their "X" axis up on their account sheet by £200 which can only mean that you will only ever 'borrow' your own money and never the banks.

If your budget is impossible to meet, then being in constant overdraft is just one more penalty too far.

I personally have a £1000 overdraft but have not used it for fifteen years ... it's called living within my means!

I have an overdraft facility, but I don't use it, and haven't used it ever, so, yes, I could live without it.

I have lost count of how many COUNTRIES depend on their continually increasing state debt just to pay the cost of ridiculous promises to their fickle electorates. Personally I decided over 40y ago NEVER to buy (invest ???) in any government debt, gilts, premium bonds, etc when I saw they they couldnt even keeptheir promise to pay back WAR LOAN and made it an irredemable / inperpetuity issue the thieving little so and sos. Do not trust governments with YOUR money - plenty of warning signs in history.

I haven't had an overdraft for almost 2 years now and I don't plan on having one. I am more likely to transfer money from my savings account now than apply for an overdraft facility.