I’m happy to pay £15.50 a month on an overdraft of £1000, as the interest isn’t too expensive. However, if I were to be constantly reducing my overdraft over time, I’d still be paying the same amount of interest (£15.50 a month) right up until it has been paid off, making the cost of the debt progressively more expensive with the less debt I actually have (quite ironic).
I got in the overdraft as I needed the cash quickly, and have every intention of paying it off when I get a lump sum in (selling my car in a couple of months). Up until that point, I’d still like access to the full features of the account. As I said before, I’m willing, able and happy to pay £15.50 currently, so why not give me the option? Just because someone is utilising their overdraft facility, it doesn’t mean they are in financial difficulty.