Find the right overdraft limit for you

Choosing the right limit can help you:

• Save money on interest costs
• Get rid of your debt faster
• Keep your finances on track.

 So it’s worth taking the time to consider what you spend, and why you spend. 

No matter where your finances are at, a budget is your most important financial tool. A budget helps you work out how much money you have left after paying essential expenses. Review your budget to see how much you can afford to put towards overdraft repayments. Aim to pay your overdraft balance in full as often as possible.

Don’t have a budget? Our free budget builder can help you create one. 

Are you a saver or a spender? How disciplined are you? If you tend to make impulse purchases, reducing your overdraft limit can help you avoid temptation.

Our financial wellbeing tool can help you understand your approach to money.

Even the most disciplined of us have probably said “I’ll just dip into my overdraft” at some point. It can be comforting to have access to an overdraft, just in case. But having a higher overdraft limit than you need can end up costing you.

Here are some signs you may want a lower overdraft limit:

• Your overdraft limit is more than your monthly income
• You find it hard to resist impulse buys – especially if it’s something you can’t really afford
• You struggle to keep on top of your budget
•  You find it hard to meet your savings goal 
• Your circumstances have changed, e.g. rent increase or job loss. 

If you want to reduce your overdraft limit, call us on 0800 269 296, or visit one of our branches with photo ID.

Your overdraft limit isn’t set in stone. It’s a good idea to review it regularly to see if it’s higher than you really need.