Overdraft Help

aaronoxf

I have two bank accounts, one active (salary, direct debits, etc) lloyds TSB. and one inactive (well I have one small direct debit of £5 coming out of it) this one is with HSBC I have a £1200 overdraft limit on it and have been overdrawn for a while, just for the easy fact that i forgot about it. Left it running itself so to speak, I am now £600 overdrawn I think but am getting charged around £18 a month interest. Is this right?

Does anyone know of any options to get rid of this overdraft easily?

continualdiamond

Do you use the overdraft at all or have you stopped? Could an option be to reduce the limit from £1200, to like £650, so you've got £50 spare if you needed it and then could you pay some money into the account to like chip away at the balance to pay it off??

aaronoxf

no like I said the only thing coming out of that account is a £5 standing order for broadband every month. what would the benefit of me reducing it be? I have never gone over my limit

aaronoxf

Sorry just read my reply, it sounded really snappy! thanks for the advice and I will see speak to them and see if reducing it would be worth while

continualdiamond

Only thinking of reducing the limit so then that way you cannot spend it (not saying you would) but just that sometimes we all don't think clearly and use an overdraft then wish we didn't.

Do you have internet banking? If you do then i know with my old bank and current one (lloydstsb and natwest) you can cancel, amend or set up standing orders. Maybe switch it, then that way HSBC is just a £600 debt that you can transfer money into, if that is an option.

aaronoxf

thats an option I guess, then its just sat.....could do that, but £5 a month isnt really killing me. I dont have a card for the said acount any more so spending isnt an option

aaronoxf

do you not think there is anyway of opening another account and going overdrawn in that and pay this overdraft off and close it down, because £18 a month is not nice payment

continualdiamond

Alliance and Leicester maybe then??

Get a 0% EAR typical overdraft. No interest or usage fees on arranged overdrafts for the first 12 months from when you open the account.

But you do have to pay in £500 over a mth.

GeorgeUK

Personally, i'd change the DD to the active account and try to get a 0% virgin money creditcard to do a super balance transfer. This would allow you to pay your minimum of £25 per month on the new credit card and not get any more charges - just make sure the old account is closed.

aaronoxf

I dont want to go down the route of opening a crdit card account. i dont own one and I have done pretty well without one. I think it best I reduce my limit and try and clear it asap thanks for help