the bank....

iVillage Member
Registered: 05-11-2005
the bank....
2
Fri, 07-15-2005 - 5:37pm

I went over to the bank today to take my snowflake there. I thought it was 18.34 but the money machine there said it was 19.27. Who am I to argue with a money-machine. Anyway, as I was there, the teller said to come back on or around August 1 to talk to her about slightly raising the overdraft. Since I am only over the overdraft by a couple 100 a month. I would pay less interest on that. I think I will do that, have it raised to 2500 (it is now 2000) that way I'm sure all the bills are paid and I have no late ones. If I stick to the plan of snowflaking and getting that thing down and if I tell her my idea of being debt free in 57 months I should be okay. Maybe she can also give me some valuable advice. What do you think?

Sushi

iVillage Member
Registered: 11-21-2003
In reply to: sushi607
Sat, 07-16-2005 - 7:08am

Hi Sushi,

two things to think about it before raising that allowed overdraft:
1) Are you sure it will help you in lowering your debt? It only works if you save on the interest for those extra few hundreds above your credit line, and even then slowly pay back until you've reached black figures again. If you feel like it would decrease the pressure to repay, I'd say don't do it.
2) The bank lives off the money we pay for them lending us. So offering that raise in the overdraft line is not altruistic - but in their own best interest. It is like handing out credit cards to make people use them.
You already get what I am pointing at: It might not be that good to accept the offer, unless you feel sure it will help you reduce debt.

Greetings, and have a nice day - whatever the weather is at your place (we had hot humid weather yesterday and pouring rain all evening...)
Jordis

ivy_jordis

iVillage Member
Registered: 05-11-2005
In reply to: sushi607
Sun, 07-17-2005 - 9:20am

Hi Jordis,

I have been thinking about what you said and I think I will go ahead with it. I have had bills come back this month, especially the "Nebenkosten" and I would like to stay up to date on the bills. So the result is that I have to pay late fees, collection agency fees and what not, which is worse to me than increasing the overdraft. It is clear to me that the bank just wants to make money off of me, so I will keep myself under pressure to pay down the overdraft, but if I am late on bills, it makes me panicky and it doesn't help me psychologically. So yes, I think I'll go ahead with it and have them put it higher. I will still be snowflaking and trying everything to get rid of the debt and eventually I will be able to go there and tell them to lower it again, since we will have reduced it enough to no go over anymore.

Sushi