Student overdrafts help !

Badges: 0
Report Thread starter 3 years ago
I am trying to understand what a overdraft is before I enter the unfortunate world of debt .
A example ,
If I had a student overdraft of 1,000 pounds in the first year and spent it , but need more money towards my studies can I not pay that sum until I finish uni however extend my over draft for the next year of study for a extra 2,000 pounds and the third year to 3,000 and leave uni with a 6,000 overdraft debt.
Is that possible , I have not done that or plan to it was just a example . I know its a tad confusing but I couldn't explain it in any other way.
Badges: 19
Report 3 years ago
So an overdraft is basically additional money from your bank. IT IS A LOAN! It has to be paid back. It's not "free money."
Anything you add to your account pays back the overdraft. So let's say you have a thousand pounds overdraft. You spend £500, then on pay day you get £250...Your overdraft is now -250.

No bank will give you a 6,000 overdraft as a student. The most you can get (as far as i know) is £3000 (Halifax give a £3000 overdraft in third year). You can get £1000 in first year UP TO £3000.

Also bear in mind a bank may not extend your overdraft (Nor do they have to) . If you go the entire of first year at -990 the bank are very unlikely to extend it any further until you at least show you're capable of paying back what they've given you..

Quick Reply

Attached files
Write a reply...
new posts
to top
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.


Regarding Ofqual's most recent update, do you think you will be given a fair grade this summer?

Yes (329)
No (622)

Watched Threads

View All