Do I really need an overdraft?
Many people in the UK will have access to "interest-free" overdrafts for which they may be charged a small administration fee on a monthly basis. However, do we really need an overdraft or is it simply a long-term extension of our own credit facilities?
The ideal of an overdraft should simply be access to emergency credit at very short notice. However, it can be very easy to fall into the trap of accumulating your overdraft facility with your income on a monthly basis to arrive at "accessible credit limits". This can often lead to situations where we fall into our overdraft facility earlier and earlier each month which can often lead to extended overdraft facilities which are often more expensive and attract higher interest rates.
Even an interest-free overdraft facility, although often very useful at the time, can be the first step towards more debt and more charges in the future. We all need to be vigilant and keep within our budgets and not automatically assume that our overdraft facilities are part of our "everyday budget". It is easy to suggest that a £100 overdraft is simple to pay back but this could become £200, £300, etc and the situation can easily get out of control.
Do I need an overdraft?
The subject of overdrafts, and overdraft fees, has been in the financial press for many months now and will continue to grab the headlines for some time to come. However, there is no doubt that many people across the UK make good use of their overdrafts to give themselves a buffer between unexpected expenditure and everyday spending. But do you actually need an overdraft? For many people the ve...Read More
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The vast majority of people in the UK are unlikely to have changed their bank account over the last decade even though the process has never been easier. There are hundreds of thousands of sites on the Internet which offer access to the best rates and the best returns available and indeed in many cases the companies involved will "do the paperwork for you". So why are UK consumers and UK businesse...Read More
Abbey National encounters technical problems
It has been revealed that many Abbey National customers have been affected by technical problems at the UK bank which have seen inwards and outgoing payments remaining unprocessed over the last 24 hours. While the bank has confirmed that no customer will lose out with regards to charges because of the technical problems, the bank was unable to give a timescale for processing all payments even know...Read More
Has Richard Branson scaled back his expansion plans?
The news that Virgin Money has acquired Church House Trust, one of the U.K.'s smaller regional banks, took many in the market by surprise with speculation that he was looking towards the Northern Rock. However, has a Richard Branson really scaled back his expansion plans? Purely and simply the acquisition of Church House Trust gives Virgin Money access to a UK banking licence and the ability to...Read More
Has the Dunfermline Building Society been sold short?
Despite revelations that the Dunfermline Building Society is about to report a £20 million plus loss for the current year there would appear to be severe anger within the company's halls of power. While there is no doubt, if the financial information in the public domain is correct, that the building society has come under severe financial pressure of late, there are concerns about the actions of...Read More