over drawing??? may sound stupid but i dont have a clue about this?

Question

I have a £1000 overdraft limit ok,my question is... once my own money in account runs out i can then withdraw upto £1000..ok!But when do i need to pay it back? I earn a weekly wage so i assume it just goes back into the money i borrow? Also if i was £1000 overdrawn and lost my job what would happen with no means of repaying? Just wondering like i do dum de dum de dum

So what i really wanna know is if i run out of money over xmas and overdraw by lets say £400 when do i pay it back weekly or monthly

Answer 1

It depends on your agreement with your bank. My bank for example take 10% of the total amount of the overdraft every month until it's payed off. So if I went over by $200 then every month my bank would take $20 until it was payed off, with interest of course.

If you lost your job, the bank would treat it like any other loan.

Hope it helped.

Answer 2

an overdraft is like a rolling loan from your bank. All the time you're overdrawn you will be charged interest on the amount.

As you pay funds back into your account it will go to pay off the overdraft until you get back into credit (positive balance).

If you go over your agreed overdraft limit you will be hit with "unauthorised overdraft charges" usually about £25 along with a higher rate of interest on the amount you are overdrawn by.

If you can't repay, eventually the bank will want to know why - beware direct debits etc that will automatically go out of your account regardless. If you get to the stage where your direct debits "bounce" you will rapidly accumulate charges on top of the borrowing you've already got - that's when it's easy to get into trouble.

Suggestion - try not to lose your job and don't overspend at Christmas.

Answer 3

It means that if you accidentally write a check or use your debit card for more money that is not in your bank, the bank will cover you up to that amount. You will still be charged overdraft fees. Once you go over the 1000 limit, the bank will be returning the checks to the company you wrote the checks to. So you will need to pay them back, plus the bounced check fees that the company charges. You need to pay it back as soon as possible.If you deposit your work check, then all of it will go to your debt until your account is not overdrawn any longer. If you lose your job and do not have any intentions of paying it back, I'm not sure what happens in the UK. In the US, you can face court fines and fees.

Answer 4

As the overdraft on your account is agreed with the bank then it shouldn't be a problem to stay in the red for a while. Be aware though that the bank can cancel the overdraft agreement at any time and demand that you pay it back. Best thing is to not use it unless absolutely necessary.

If you're not up to the limit yet you should ask your bank to reduce the overdraft amount. A grand might be difficult to pay back in one go!!

Answer 5

I am excellent when it comes to money, OK what over draft means is the bank will lend you the money if you run out of your money but you will have to pay back the overdraft amount plus the bank fee. You must pay back ASAP b/c the bank will automatically withdrawal the minute you put a buck in your account untill the bank gets every penny back. To avoid this you should get a savings and link the two together or get rid of you debit card and used cash until your responsible with your money. If in a few years you plan on borrowing for a loan for school, car, house whatever the banks are going to check your history.

YOU MUST HAVE GOOD CREDIT IN AMERICA DONT F*** UP!!!!

Something so minor to you can turn out to be a stupid mistake the older you get and effect you for the rest of your life.
My advise CASH CASH CASH CASH CASH for
you honey!! Good LUCK!!!!

Answer 6

The overdraft is on your account for as long as you or the bank keep it there. It's rare for a bank to withdraw it unless you have other accounts which are of concern. Most banks however charge for an overdraft of this amount and if you can take a little less from it each month to try and clear it it would be advisable.

Answer 7

The overdraft facility is there to help you manage your cashflow - and to make some money for the bank. The idea is that you keep your monthly spending within your monthly earnings, but you're allowed to spend first and pay it back at the end of the month. If you were to overdraw and payday didn't materialise, the bank would soon ask for it back.

Answer 8

Lets say thay you are £1000 overdrawn and then you get paid £2000 - you will have £1000 in your account only. It is "paid back" as soon as you get more money in. If you were only paid £500, you would still be overdrawn by £500.

If you lost your job you would be in trouble - go and see the bank straight away.!

Answer 9

if its an overdraft limit then you can stay "owing" the bank foir as long as they let you hve that limit. you dont need to pay it back at any set rate, although I would just in case you were to lose your job, because you would still owe them the money.

Answer 10

Thbanks/building soc. only let you have an overdraft if you have the income/collateral. Should you lose your job im sure they will sort a repayment paper out for you. hope this helps.