The Anonymous Widower

Should You Adjust Your Overdraft Limit To Your Peer-To-Peer Account?

I am going through a high spending period of the year at the moment. I’ve had a lot of expenses and my roof is being fixed. It’s also around my birthday, when I give money to various charities.

I like to keep my current account in credit or at least I don’t let it go over my agreed overdraft limit.

I also use the interest and repayments on my Zopa loans to balance my accounts, by taking amounts out from Zopa towards the end of the month and then reinvesting it around the middle of the next month.

On top of that I have a small agreed overdraft limit, so that if say, I need something urgently and don’t want to use a credit card for the purpose, I can facilitate the purchase on my terms.

Hence the question in the title of this post.

As I get about three percent of my invested sum available for withdrawal every month on Zopa, I have just adjusted my overdraft limit to that figure, to give myself headroom so that I manage my money to my advantage.

August 6, 2014 - Posted by | Finance | , ,


  1. Do you not have to pay for your overdraft?

    If so surely it is better to use a reward credit card (such as the John Lewis card) for all day to day purchases and pay it off in full every month? That way you will get some nice free John Lewis vouchers every so often which can also be used Waitrose for a little treat.

    You can keep an eye on matters online and pay money onto the card using faster payments from your current account at any time so that the bill won’t be a shock at months end. I give myself a weekly pocket money budget on my current account, but do the spending on my credit card, and at the end of the week transfer the remaining money across to the credit card. So apart from the odd cash withdrawal most transactions on my current account are transfers across to my reward credit card.

    The free vouchers are a pleasant treat, and because they are paper vouchers they can also be used as gifts.

    There are many other reward cards (other cards are available as the BBC would say) – suffice to say I would highly recommend this way of managing things.

    Comment by Robin | November 10, 2015 | Reply

  2. I have a John Lewis card, but it is crap except for the rewards.

    1. I can’t get a contactless one.
    2. The on-line system was designed by a sadist and it’s very poor.
    3. I can’t get my statements paperless.
    4. My card has been cloned several times. At least they spotted it.

    The on-line system for Amex is an order of magnitude better.

    Comment by AnonW | November 10, 2015 | Reply

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