I worked in aib for 45 years and like most bank officials was not allowed an overdraft limit on my account. for what it is worth i feel most salaried people should not have overdraft limits as in effect they encourage overspending. i apprreciate sometimes unforeseen outlay may occur but most banks will allow a temporary overdraft to cover a once off situation. in my experience what happens when you have a limit is say in month one you are overdrawn x euro before salary cheque is lodged. if you do not cut back by this sum in the following month you will again be overdrawn by x euro. more likely the overdrawn figure has increased which means you are spending more than you are getting. sorry for being long winded but you would be amazed at the number of people will not accept this basic fact. usually they will say < we are a little in the red.> they are building up a hard core borrowing to use the term used in the past and should seek a term loan to clear this and vow to stay in the black in future. if they do this they will not be troubled with increased rate of surcharge interest.
aib increased interest surcharges
- Thread starter dewdrop
- Start date
That's a ridiculous overgeneralisation. Overdrafts, managed correctly (i.e. not as a source of medium/long term lending) are perfectly reasonable short term cashflow management tools.
You mean similar to how the interest charges build up on an habitually uncleared credit card balance? So what? The fact that some people don't manage this stuff to their best advantage is their own problem. Not indicative of something intrinsically "wrong" with these sources of credit.
What has this got to do with the thread title?!
Yeah - it's a big conspiracy by financial institutions against poor unsuspecting naive consumers rather than them providing services that many people will fine useful but some people, through their own volition, will mismanage to the detriment of their finances ...