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Overdraft Watch

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    Ok, so i am confused, whats the difference between Balance and Available balance. I have X amount in my account, but i also have X amount available. I do have an overdraft. But I have used this once. It seems that when my loan came in , it took whatever the amount I spent on the overdraft and put it back into the overdraft. Now i have the remainder left as balance, but i still have 750 as overdraft. Am I allowed to use the 750, if i run out of money in my account. And why do they take money from my loan to put into the overdraft?
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    Balance and available balance is the same thing. If you have an overdraft then you have to pay the amount back to the bank. If you spend the 750 overdraft then it will be doubled and you have to pay back 1500

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    (Original post by PHDinquestions)
    Ok, so i am confused, whats the difference between Balance and Available balance. I have X amount in my account, but i also have X amount available. I do have an overdraft. But I have used this once. It seems that when my loan came in , it took whatever the amount I spent on the overdraft and put it back into the overdraft. Now i have the remainder left as balance, but i still have 750 as overdraft. Am I allowed to use the 750, if i run out of money in my account. And why do they take money from my loan to put into the overdraft?
    To avoid confusion, always look at available. The balance includes money that has yet to be taken from you but the available is the total amount of money you can use after all transactions and also includes how much is left of your overdraft so be sure to refer to that.

    They don't take anything from you, you can still use what is left of the 750 and you are not being charged for it.
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    (Original post by samzy21)
    Balance and available balance is the same thing. If you have an overdraft then you have to pay the amount back to the bank. If you spend the 750 overdraft then it will be doubled and you have to pay back 1500

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    This is wrong. Balance and available are not the same. If the bank gives you an authorised overdraft which OP has, you are free to use it.
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    (Original post by samzy21)
    Balance and available balance is the same thing. If you have an overdraft then you have to pay the amount back to the bank. If you spend the 750 overdraft then it will be doubled and you have to pay back 1500

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    Why would it be doubled, as its my money. You see prior to the loan, i had the overdraft, and i spent it all. Then when the loan came in, they took 750 out of the loan and put it in the available balance. So for example if i spent 750 of my overdraft, and my loan came in which would be 1000, then my balance would be 250, but my available balance would be 1250. I havnt paid it back, they have just in a way 're-filled' the overdraft. But im not sure if i am allowed to break into it again?, and why they do this?
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    (Original post by PHDinquestions)
    Why would it be doubled, as its my money. You see prior to the loan, i had the overdraft, and i spent it all. Then when the loan came in, they took 750 out of the loan and put it in the available balance. So for example if i spent 750 of my overdraft, and my loan came in which would be 1000, then my balance would be 250, but my available balance would be 1250. I havnt paid it back, they have just in a way 're-filled' the overdraft. But im not sure if i am allowed to break into it again?, and why they do this?
    It's not doubled.
    Yes you can use it. Your available balance is 1250 so you can use 1250. You will be in minus though but you don't have to worry about paying back your overdraft until after uni. They haven't taken any money from you. Your available is the most up to date. It includes what is left of your overdraft, what is left of your loan and any recent transactions you have made.
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    (Original post by cherryred90s)
    To avoid confusion, always look at available. The balance includes money that has yet to be taken from you but the available is the total amount of money you can use after all transactions and also includes how much is left of your overdraft so be sure to refer to that.

    They don't take anything from you, you can still use what is left of the 750 and you are not being charged for it.
    Thank you , as i was just not sure, because i did not understand why they took money from my loan to 're-fill' the overdraft if you like?, so i can if i want re use that 750, and not have to pay double or extra? because it is a formal overdraft of 750.
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    (Original post by cherryred90s)
    It's not doubled.
    Yes you can use it. Your available balance is 1250 so you can use 1250. You will be in minus though but you don't have to worry about paying back your overdraft until after uni. They haven't taken any money from you. Your available is the most up to date. It includes what is left of your overdraft, what is left of your loan and any recent transactions you have made.
    Thank you, finally a straight answer!!, you cant beleive how confusing this is and frustrating, i was underbudgeting!
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    (Original post by PHDinquestions)
    Thank you , as i was just not sure, because i did not understand why they took money from my loan to 're-fill' the overdraft if you like?, so i can if i want re use that 750, and not have to pay double or extra? because it is a formal overdraft of 750.
    Yeah I know what you mean, I thought the same. I was frantically calling my mum complaining that I wasn't ready to pay back my overdraft only to find out that I haven't paid back anything lol, it's pretty confusing at first, but yeah, the amount shown on your 'available balance' is the maximum amount of money you can use.
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    (Original post by PHDinquestions)
    Thank you, finally a straight answer!!, you cant beleive how confusing this is and frustrating, i was underbudgeting!
    No problem!
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    (Original post by cherryred90s)
    No problem!
    And just to close, all i would need to pay back is the overdraft limit i agreed upon, which in my case is 750.
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    (Original post by PHDinquestions)
    And just to close, all i would need to pay back is the overdraft limit i agreed upon, which in my case is 750.
    Yes exactly that
    Just make sure you're always looking at your available balance and you'll be fine
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    Balance and available balance are basically different because available balance is what is available after pending transactions have been earmarked for debiting.

    Basically if you pay for something on Just-Eat or buy a train ticket ect.. the bank will be told that a debit is going to be made by the chip and pin machine but your bank won't actually release the funds to the company for 3-5 days so it simply reduces your available balance immediately and then the money goes out a few days later.
 
 
 
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