Looking for some advice Overdraft wise

(Steven Earl) #1

I’ve been a natwest customer for quite some time. I also have a monzo account as well currently untouched. I have stuck with natwest for quite some time but I’m looking to change. My only concern is that monzo doesn’t offer the same overdraft as natwest.

I would love to make the jump but I find myself hesistant to do so because of the overdraft that isn’t so big. Am I being silly should I just jump into it?

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#2

Please don’t take this the wrong way, but shouldn’t you be concentrating on not having an overdraft in the first place? I accept, coming from someone who hasn’t been overdrawn for almost 30 years, it might be easy for me to say, but the ideal position to be in, is not having any sort of overdraft at all.

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(Emma (still not the app)) #3

Do you often use your overdraft and if yes do you use it beyond the limit Monzo have offered you?

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#4

I have a similar conundrum. I have five figures of overdraft allowances elsewhere but £0 offered by Monzo and AFAIK the max limit is £1000. I sometimes make use of overdrafts so I wouldn’t ditch the other accounts unless I had something similar over here.

I’m not bitter about it (like that guy who kept starting threads to lambast Monzo’s credit decisioning). I just have zombie accounts elsewhere, it doesn’t make any difference to Monzo or the other banks (or to me, to be honest). What’s wrong with having more than one current account?

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(Steven Earl) #5

I use the overdraft but not all of it. I guess it’s the comfort of knowing it’s there if it need it.

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(Steven Earl) #6

I appreciate what your saying. To give a bit more of a backstory it’s something that I’ve had since university which I’ve nearly paid off. So it’s a nice thing to have perhaps im not in the right mindset.

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#7

I’m definitely not judging, I promise.

I found myself in an overdraft a lifetime ago and I didn’t like it at all. It stemmed from a relationship I was in at the time. I vowed once it was paid off, I would never find myself in the position of either wanting or having through necessity, any sort of overdraft ever again. And so it has been that way for years.

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(Emma (still not the app)) #8

Could you build up a cushion of savings to make up the difference between the overdrafts and then switch accounts? Or just keep the other account open so it’s there if you need it?

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(Graham - Mental health professional) #9

Yes, perhaps keep the NW account open, complete with overdraft.

Start enjoying using your Monzo account and aim to wind down the overdraft until it’s sat there doing nothing.

But don’t give yourself a hard time over it, either. :grin:

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#10

I’ve been in exactly the same position. I had a £2000 NatWest overdraft I’d been into and out of to varying amounts since Uni and the comfort blanket of it stopped me moving.

I took the plunge and moved my DD’s manually to Monzo, keeping my NatWest open and I was genuinely helped by the budgeting features of the app that allowed me to actually pay the damn thing back and stay out of it, hopefully for good this time. In fact, moving showed me how much money I was blowing every month just paying NatWest fees

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(Steven Earl) #11

I think the only danger is needing to have direct debits coming out of that account. to make sure I don’t have to pay the overdraft off.

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(Steven Earl) #12

I think I’m nearly there to be fair. I think it’s just the fear of needing it again.

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(Graham - Mental health professional) #13

Steve

I’ve the same caveat with a Santander account. I need it for its current account interest. I need a few key DD’s to give me all the benefits (for you - read “overdraft”).

That’s all OK. I’m sure we’d all be keen to have everything in one place - neat and tidy. But it ain’t.

I can’t see anything wrong with where you’re at. Just aim to not associate it with words like ‘fear’ and ‘danger’ :smirk:.

You’ll find plenty of fellow travellers here who are in similar circumstances to you.

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