Published on October 1st, 2013 | by Pete0
How current is your overdraft limit?
Most of us have a current account, it’s how we pay our bills and generally function in this world of ours. A useful / nightmarish extension of current accounts, is the overdraft. These poisoned chalices can be helpful to get out of a scrape, but can also be a bit of a handful if you struggle to keep on top of your finances.
I remember when I discovered the world of increasing overdraft limits. I was a student, which meant that I inevitably needed an extra fiver for pot noodles / books / beer etc. Luckily my student account of the day allowed me to request a higher overdraft limit, meaning that I was always able to access money when I needed it. The problem is of course, is that this habit is part of what helped contribute to my current predicament.
The question is therefore, how current is your overdraft limit? If you are in a better position then you have been previously – is it time to adjust your overdraft limit? Do you need it to be as high as it currently is? With a smaller overdraft limit you may be less likely to start plundering it when things get a bit tight. Even if you can reduce it by a tenner a month; this is still progress. So, in summary, give it some thought – can your overdraft limit be reduced?