Overdrafts

Should I Use my Overdraft so I can Afford Healthier Food?

A lot of people are looking for ways to improve the way that they are eating and to be healthier. Many people feel that this will mean that they will need to spend more money on food. They may therefore be looking for ways to afford to do this and may see their overdraft as a solution. It is worth understanding a bit more about how an overdraft works to see whether this is a good solution as well as thinking about ways that you might be able to be healthier without paying out more money.

Using an Overdraft

An overdraft should be used as a temporary solution to give you some extra money. It is set up with a current account and the bank or building society will let you know how much they are happy for you to go overdrawn. This means that you will be able to spend this much more money than you have in your current account. It is then repaid when income is paid into your current account. If you use an overdraft each month then eventually you will find that you are borrowing more and more money. You could find that you will no longer have any money available to borrow or you will go beyond your overdraft limit and this could mean that you will have to use your unauthorised overdraft. This is more expensive than a standard overdraft but any overdraft will cost money. You are usually charged money and a fee and this is added in to what you have to repay.

If you are having to use your overdraft every month in order to afford your food bill then this is unsustainable. For example, if you pay £50 extra each month, then when you repay this you will pay the £50 plus the fees and interest let’s assume that is £55. So, the following month you will actually be £55 short because of the £5 charge that you have to pay as well as the £50 extra on food. This means that you have to go overdrawn by £55 to cover that. Then you will have to pay a charge on the £55 which could mean you end up owing £61. This will escalate each month and you will end up getting more and more in debt.

Therefore, going overdrawn is really not a sustainable way to eat more healthily. In fact, borrowing to cover this cost will not work. However, if you can find a way to cut down spending elsewhere you will be able to use that money to buy food and will not need to borrow more. However, it could be possible to eat more healthily without spending more money.

Eating More Healthily

Many people these days eat out a lot or buy take away food. These meals tend to be expensive but if you get healthier alternatives these tend to be even dearer which is why it is easy to think that eating more healthily is dearer. However, if you stop eating out or having take away food and cook yourself, then you will find that you will immediately be able to save money and you can have healthier food at a lower cost.

Another way to be healthier is reduce portion sizes. Many of us eat far more food than we need and this can mean that we are spending more money so if we split our portions in half, the food will last us for twice as long and therefore be half the price. Many of us also snack between meals, which is also something that we could do without and save the money that we have been spending.

Foods marketed as health foods, such as items in the health food shop or trending health foods can be extremely expensive. However, these are not necessary to buy in order to be healthy. Often these foods are just products of good marketing and you can eat cheap foods and still get all of the benefits. Or example, goji berries are supposed to be very healthy but you can get similar benefits from any other soft fruits including blackberries which you could pick in a country lane.

Therefore, it should not be necessary to spend more money in order to get healthier. However, if you do find that it is getting more expensive then it is best not to borrow the money, including getting an overdraft. It will be far better to find a way to reduce the money you are spending on other things if you can. Most of us buy things that we do not need and so we can look at our spending and think abut whether there are any things that we are prepared to go without. It might be that we buy things that we do not really use, perhaps magazine subscriptions or computer games and we might be able to cut down on these for a while and we will be able to use the money that we save to spend on food.

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