Tuesday 23 May 2017

How you can break costly overdraft habit

WANT to break your overdraft habit but not sure you'll be able to? Here are some tips to help you avoid overdraft city.

Cancel the facility

If your overdraft is small, you could consider putting in a small lump sum from your savings to put your account back into credit, and then cancel the facility.

Take out a personal loan

If you are heavily in overdraft, you could consider taking out a personal loan at a lower interest rate to pay it off and then cancel the facility.

Monitor your account

Once out of overdraft, check your account regularly to keep an eye on your balance.

Note your direct debits and standing orders

As part of your monitoring, remind yourself what dates your direct debits or standing orders are paid so you can make sure you have enough in your account.

Create a buffer

Always try to have at least a few hundred euro at all times in your account to cover you for any unexpected payments or a long-standing cheque that you had forgotten about.

Get rid of the chequebook

If you write a lot of cheques, try using the chequebook less or get rid of it altogether. In this age of almost instant electronic banking, cheques can be awkward because they take days to clear, leaving you unsure of your balance.

Irish Independent

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