• goanna60
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Would a overdraft help my situation?

  • All my payments fall at the same time, I don't like direct debits as they don,t take the money out straight away, then the bank takes fees, and when they do take the money out, if it's three days later, there isn't enough money in the account then I get charges and more charges and more charges as they keep trying to take the money out. HELP!!!
  • Asked by goanna60 (almost 3 years ago)
  • banking managing money general debit cards fees online budgeting debt bank accounts

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  • Tsui
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  • I suggest you put certain amount of saving in your bank account which one you use direct debit to prevent the dishonoured fee. The other option is cancel all direct debit and take your bills to the Post Office and make the payment.
  • Answered by Tsui (almost 3 years ago)
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  • I think you’d be better off opening a second bank account. For that second bank account, you need to work out what your monthly bills are – the ones you are currently having direct debited – and transfer enough money into that account to cover those bills. If you know there’s a bigger bill coming in, then you need to transfer extra money into it. That way, the money is in Bank Account #2 and not in your primary account and you, therefore, hopefully won’t see it to touch it.
    You can set up one monthly/weekly automatic transfer from Bank Account #1 to #2 that is designed to cover all of those direct debits.
    But it really comes down to budgeting. And one of the important elements of budgeting is to spend less than you earn. There are plenty of tools out there to help with budgeting, but you can try the monthly budget tool one from my website, if you’d like. Go to www.debtman.com.au and see the button at the top right. Fill in your income and expenses and it should help you get an idea of where and when your money is going. Hope that helps.
  • Answered by debtman (almost 3 years ago)
  • cherrypie
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  • Does your bank have sub accounts?

    If so you could set up your direct debits to come from the sub account, then set aside all of the bill money into that account. You can also take the precaution of arranging for a sweep to cover the possibility of forgetting to transfer to the bill account prior to a direct debit taking place.

    If the bank doesn't do sub accounts, provided they have a free account a second account would work just as well, although sub accounts often attract higher interest rates than the regular transaction accounts.
  • Answered by cherrypie (almost 3 years ago)
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