overdraft

[stylinsam]

Dont know if this is in the right section (sorri if not). i have an overdraft of 900pounds when i get my monthly wage obviously i fall into the overdraft each time. i would like to start paying my overdraft of monthly which isnt the issue really, what it is is ive been of sick for the pass 3 weeks (with a signed sick note from my doctor) obviously i will only be getting sick pay which lets say is 400pounds - what happens with my overdraft when the 400 pound get put into the bank but i am 900pounds overdrawn, dont know if im making much sense, basically will i be charged for this happening ?

[CheekyChops]

If you are �900 overdrawn and pay �400 in, then you will be �500 overdrawn. It depends who you bank with and what their OD charges are but you will certainly pay interest on your overdraft.

[padanarm]

I think you mean you have an overdraft and that the balance of your account is minus �900 so you owe the bank money.

By the power of arithmetic, if you deposit �400 you will end up with a balance of minus �500 so you will owe the bank less money but the overdraft will have swallowed your wages.

If you have an authorised overdraft, you could withdraw more money up to your limit. If not, you may have to ask the bank to extend your overdraft to cover your living expenses.

Because you have an overdraft you'll be paying interest and charges on that overdraft which will add to the debt. Check the terms and charges on your account - speak to the bank if you're not sure.

Overdrafts can be fine if they're for a short time and you can replace the funds quickly. Otherwise they can be expensive.