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Middleclass Money Management 101
Posted: Thu Sep 26, 2013 1:25 pm
by Johnlenham
wub wrote: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.
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 1:27 pm
by Forum
I forget how mine works, I think you pay something like £30 for going overdrawn, on top of the interest
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 1:33 pm
by wub
Johnlenham wrote: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
.
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 3:32 pm
by 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?
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 3:39 pm
by magma
southstar wrote: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!

Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 3:49 pm
by gwa
i live in the red for 20 days of the month
mans on road
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 3:52 pm
by Johnlenham
magma wrote:southstar wrote: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!
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 4:15 pm
by Lye_Form
magma wrote:
Overdrafts are much better than credit cards
not true doe.
I use my credit card with a direct debit, never paid any fees.
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 4:38 pm
by Forum
Lye Form wrote:magma wrote:
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?
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 4:48 pm
by 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.
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 5:40 pm
by sigbowls
i feel like going back to sleep
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 5:55 pm
by topmo3
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 5:58 pm
by Lye_Form
southstar wrote:Lye Form wrote:magma wrote:
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

)
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 6:21 pm
by 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.
Re: Post Your Random Thoughts Thread!
Posted: Thu Sep 26, 2013 6:34 pm
by Molzie
don't buy a mac m8. save your money/get something better
Re: Post Your Random Thoughts Thread!
Posted: Fri Sep 27, 2013 2:04 am
by EliteLennon117
I can't stand emotional bitches. Fuck off with that shit you ho. Motherfuckers be complaining about how they can't find love.

Re: Post Your Random Thoughts Thread!
Posted: Fri Sep 27, 2013 6:24 am
by Sexual_Chocolate
^Drake be like....
Re: Post Your Random Thoughts Thread!
Posted: Fri Sep 27, 2013 8:20 am
by Johnlenham
garethom wrote: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.
Re: Post Your Random Thoughts Thread!
Posted: Fri Sep 27, 2013 9:22 am
by 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.
Re: Post Your Random Thoughts Thread!
Posted: Fri Sep 27, 2013 9:49 am
by AxeD
Exclusive debit card business.