do you get charged if you dont?
2006-09-20 03:51:38 · 5 answers · asked by ♥cozicat♥ 5 in Business & Finance ➔ Personal Finance
Depends on the nature of the overdraft.
If it is a revolving facility then you won't necessarily have to pay it back, it will get reviewed periodically and then extended by another term i.e. 12 months.
If you borrowed the money and said you needed it for 6 months and would then pay it back, then you may have to.
All overdrafts are payable in full at the discretion of the bank, particularly if you default on it or if your situation changes and you income drops or you stop paying your regular credit in to the bank If this happens then they could register a default on your credit reference, not something you want to do, trust me.
. If you stay within it's limit, no returned items etc. then I am sure they would review and extend the term.
On the safe side, put some money into an ISA with another institution just in case they ask for full or part repayment.
If in doubt, just talk to your bank I am sure they will explain.
2006-09-21 03:42:35 · answer #1 · answered by Valiant 3 · 0⤊ 0⤋
As long as it was arranged in advance, you should be able to make arrangements with the bank to pay a bit off at a time... until it is cleared.
Nationwide, however, forced me to clear an £1100 in full, becuase it was £100 over the limit and I hadn't reduced it in 3 months.
You should contact your bank as soon as possible.
They will start charging if the overdraft is unauthorised and will charge interest too.. so it will start to grow exponentially!!!
2006-09-20 04:18:43 · answer #2 · answered by tattooed.dragon 3 · 0⤊ 0⤋
Depends on the bank. I had a permanent £600 overdraft which I regularly used every month, as long as you pay the fee's and don't go over the agreed limit they tend not to care.
Contact your bank and ask.
2006-09-20 05:02:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
it depends on your bank and the type of account you have as well as whether the overdraft is agreed or not.
usually there is interest charged on your overdraft and fees if you fail to keep within the overdraft agreements you have with your bank.
Suggest you talk to your bank to be sure what applies to you and whether there is anything they can do to help.
2006-09-20 03:55:17 · answer #4 · answered by blackmuggle 2 · 0⤊ 0⤋
If you don't pay it back, maybe abandon the account, the bank will eventually close your account and send it to collections... could get ugly...
2006-09-20 04:01:06 · answer #5 · answered by Yoda's Duck 6 · 0⤊ 0⤋