Young Wrexham

Overdraft

• Overdrafts allow you to draw out more money than you have in your bank or building society account at a cost. You are borrowing money from the bank
• Although they are quite common, you should think very carefully before agreeing to an overdraft or before going into an overdraft
• There are hefty charges for going overdrawn, especially if you haven't agreed an overdraft with the bank. Charges will vary depending on your bank or building society
• An agreed overdraft will set a certain level that you cannot go over but will still see you getting charged for using it. Be careful to stay within this limit or the charges could be even higher
• Some higher education students get interest-free overdrafts and are not charged for being overdrawn, but this is a special arrangement with the bank
• If you're likely to overdraw regularly, arrange an authorised overdraft, which allows you to go overdrawn up to an agreed amount. You may have to pay a monthly fee or interest, or possibly both, and you may still be charged a fee for each transaction made while your account is overdrawn. But an authorised overdraft is cheaper than an unauthorised one
• It is unlikely you'll be offered an overdraft if you are under 18-years-old
• To set up an overdraft, make an appointment at your local branch or call your bank or building society. Be prepared to talk about how you plan to repay the overdraft
• Remember, an overdraft is a debt that you must repay

If you are struggling to get out of your overdraft, talk to the bank about ways you can help or to the Citizens Advice Bureau for advice on managing your debt. There are ways to help tackle an overdraft/

You can contact the Money Advice Service on 0300 500 5000 (or 0300 500 5555 for Welsh) Mon - Fri 8am-8pm, Sat 9am-1pm. There’s also an online chat function on their site.

You can contact Meic for free via online chat, text (84001) or phone (080880 23456).