Middleclass Money Management 101

[Johnlenham]

Made this into a new thread for financial discussion shizzle.

So having never had an overdraft before, I just want to check before I apply for a 1k one.
Say I spend 1.5K when I only have 1k in the account, Ill drop to -500 right?
So do I then pay 18% intrest on that 500 in one calender month unless I get back into the Black before that time limit? In which case I have "borrowed" it for "free"?

Stupid question but Ive had a credit card for 7 years and never had a balance go over about 20 days so Ive never paid intrest on anything, never went to Uni so i dont have an absurd overdraft limit either.
Just want to make sure I have this right as its only a back up for when I evenutally move.

[Forum]

I forget how mine works, I think you pay something like £30 for going overdrawn, on top of the interest

[wub]

So having never had an overdraft before, I just want to check before I apply for a 1k one.
Say I spend 1.5K when I only have 1k in the account, Ill drop to -500 right?
So do I then pay 18% intrest on that 500 in one calender month unless I get back into the Black before that time limit? In which case I have "borrowed" it for "free"?

The 18% will be annual, not monthly. So if you're overdrawn by 500 for one week, interest will be 18% of (500 / 52wks)

http://www.which.co.uk/money/savings-and-investments/
http://www.telegraph.co.uk/finance/pers ... ce=refresh

.

[Johnlenham]

Intresting (pun not intended).
So say I got paid after two weeks and thus filled the void, Im looking at paying what? a few quid maybe?

You only get slapped with fines for going over your agreed limit? so right now If I hit -100 Id get fined as I have no formal overdraft or if i went to say I got a 1000 overdraft and went to -1010, so £10 over my agreed limit id get a fine?

[magma]

I forget how mine works, I think you pay something like £30 for going overdrawn, on top of the interest

You'll only get charged if you haven't previously arranged an overdraft or if your bank are stnuc. The charge should be for an "unauthorised overdraft".

If you've agreed an overdraft limit with your bank, it should be free to use and pay off within the month. After the first month you'll start paying as per a credit card (interest rate will be annual, not monthly)

Overdrafts are much better than credit cards, but try not to get TOO used to being in the red - it's surprisingly easy to start thinking of that as 'real' money!

[gwa]

i live in the red for 20 days of the month

mans on road

[Johnlenham]

I forget how mine works, I think you pay something like £30 for going overdrawn, on top of the interest

You'll only get charged if you haven't previously arranged an overdraft or if your bank are stnuc. The charge should be for an "unauthorised overdraft".

If you've agreed an overdraft limit with your bank, it should be free to use and pay off within the month. After the first month you'll start paying as per a credit card (interest rate will be annual, not monthly)

Overdrafts are much better than credit cards, but try not to get TOO used to being in the red - it's surprisingly easy to start thinking of that as 'real' money!

Ok awesome. I never try to spend what I dont have but this is just a back up for when I move.
Would rather have it sorted and fully understood and never have to use it, than need it and have no idea and fuck myself over!

[Lye_Form]

Overdrafts are much better than credit cards

not true doe.

I use my credit card with a direct debit, never paid any fees.

[Forum]

Overdrafts are much better than credit cards

not true doe.

I use my credit card with a direct debit, never paid any fees.

Why not just pay with your debit card in the first place?

[garethom]

I've got a credit card I pay off monthly with a direct debit. Just have it to take the full amount (which is usually £0) every month. Just have it to put expensive shit on that I can't be arsed to pay off fully at the moment.

[sigbowls]

i feel like going back to sleep

[topmo3]

[Lye_Form]

Overdrafts are much better than credit cards

not true doe.

I use my credit card with a direct debit, never paid any fees.

Why not just pay with your debit card in the first place?

Cus if i go into the overdraft then it would cost. Credit card doesn't.

credit card is better protected (had debit card cloned before )

[Muncey]

Got a credit card recently to buy a mac + logic.. well I say I did.. my mum did cause I'm a student in my overdraft so could never get one. Just pay her a direct debit each month. Once thats paid off I'm gunna buy myself a new mixer.

ASC should do a Redbull lecture.

[Molzie]

don't buy a mac m8. save your money/get something better

[EliteLennon117]

I can't stand emotional bitches. Fuck off with that shit you ho. Motherfuckers be complaining about how they can't find love.

[Sexual_Chocolate]

^Drake be like....

[Johnlenham]

I've got a credit card I pay off monthly with a direct debit. Just have it to take the full amount (which is usually £0) every month. Just have it to put expensive shit on that I can't be arsed to pay off fully at the moment.

Yeah I used to do that, I only buy stuff on my CC that is more than £50 then I go home and pay it off right away just for the added "protection" that comes with using it.
Still need to look into moving banks really as HSBC are useless stnuc.

[murky21]

because that doesn't give you a good credit rating
what lye form does is the best thing for building that up. pretty important for securing mortgages/ good rates on loans when you need it.

[AxeD]

Exclusive debit card business.