High earners

[craig1]

I aggressively use my overdraft (£5000) as I have an interest free deal for its use. It also has a £1000 buffer meaning if I'm over-aggressive or get an unexpected extraordinary blll that I have a fail-safe to ensure bills get paid. I think I've only been in the black for more than a few days in a row once in 2011 so far.

This way, I can keep my cash elsewhere where I can get better than the 0.1% current account interest rate my bank offers for current accounts with under £10,000 .

[Spacecadet]

I accidentally exceeded my overdraft the other day. I phoned the bank (first time in years) and I was put through to a very helpful chap who waived the penalty charges and increased my overdraft facility by another grand

For me my overdraft facility is a useful and necessary buffer for the monies that come and go in my account. I'm not sure I 'rely' on it as such, but it is certainly very useful. One thing I did notice was that I was clearly given some form of preferential treatment when I phoned my bank.

There are benefits to being a contractor

WHS

It's quite easy to run the "bill paying" account down. An overdraft facility makes sure they are still paid

Anyway - the article is just a marketing piece by Experian. Take with a pinch of salt

[MarillionFan]

Not when it's £100,000.

Dimprawn is that you?

[Lockhouse]

Isn't an overdraft something you associate with permies or pikeys???

Not when it's £100,000.

[MarillionFan]

I depend on my overdraft. I settle it every six months or so and start out again with the best of intentions but I'm soon overtaken by events and find myself spending more money than what's in my current account.

Isn't an overdraft something you associate with permies or pikeys???

[Lockhouse]

I depend on my overdraft. I settle it every six months or so and start out again with the best of intentions but I'm soon overtaken by events and find myself spending more money than what's in my current account.

[AtW]

I accidentally exceeded my overdraft the other day. I phoned the bank (first time in years) and I was put through to a very helpful chap who waived the penalty charges and increased my overdraft facility by another grand

There are benefits to being a contractor

[swamp]

I accidentally exceeded my overdraft the other day. I phoned the bank (first time in years) and I was put through to a very helpful chap who waived the penalty charges and increased my overdraft facility by another grand

For me my overdraft facility is a useful and necessary buffer for the monies that come and go in my account. I'm not sure I 'rely' on it as such, but it is certainly very useful. One thing I did notice was that I was clearly given some form of preferential treatment when I phoned my bank.

There are benefits to being a contractor

[Zippy]

I know my place.

[adubya]

> low earner > medium earner < sasguru

[MarillionFan]

Define high earner.

> low earner

[scooterscot]

Define high earner.

[AtW]

High earners increase their use of overdrafts

A third of high-income families now rely on overdrafts of more than £1,000, compared with 15pc in 2008.

According to a three-year survey from Experian, the information services company, 52pc of these families regularly borrow money using their overdrafts. This results in higher repayments, as rates of interest on overdrafts tend to be higher than on other credit products.

Peter Turner, the managing director of Experian Interactive, said: “Families often rely on their overdraft to get by, but that is not always the best option. Many of us choose to borrow, but it’s where you borrow from that makes all the difference.”

Personal loans are often a cheaper way of borrowing than overdrafts.

Forty-seven per cent of adults have applied for additional credit in the past two years without properly researching the best rates, with some borrowing from sources which charge relatively high interest rates, the report found. This may result in adding to their financial pressures, running the risk of missed repayments and ultimately, a poor credit history.

So how can we be sure that we make the right decision? Learn to manage our credit reports properly with a service such as Credit Expert, according to Peter: “The current financial climate is tougher than ever and seeing your credit report could help families manage their credit better, as well as helping them plan for their financial futures”.

Source: High earners increase their use of overdrafts - Telegraph