HSBC reduced my overdraft?!

colin79666

Not informing you of changes to your overdraft isn't on but the principal of cutting it down seems like the right idea to me. From the banks perspective you are no longer a student and will be/are now in full time employment so should not be relying heavily on an overdraft.
Overdrafts shouldn't be seen as long term loans - its for short terms borrowing for the likes of unexpected bills. If you are having problems paying off your overdraft then it suggests you are living out with your means. You should take a close look at your finances and if necessary seek some free advice (Citizens advice etc) before this becomes a bigger problem. Treat the bank cutting back your overdraft as a wake up call. Of course this is fairly general advice and isnt't necessarly all relivant to your personal situation.

melancholly

30111987 wrote: »

Not informing you of changes to your overdraft isn't on but the principal of cutting it down seems like the right idea to me. From the banks perspective you are no longer a student and will be/are now in full time employment so should not be relying heavily on an overdraft.
Overdrafts shouldn't be seen as long term loans - its for short terms borrowing for the likes of unexpected bills. If you are having problems paying off your overdraft then it suggests you are living out with your means. You should take a close look at your finances and if necessary seek some free advice (Citizens advice etc) before this becomes a bigger problem. Treat the bank cutting back your overdraft as a wake up call. Of course this is fairly general advice and isnt't necessarly all relivant to your personal situation.

although i agree with your points, the particular HSBC problem is that they promised people interest free overdrafts for a set amount of time and then decided to end them a year early (after trying to end them altogether last year!). graduates can't always (often?!) clear their overdrafts within a few months of graduating and i think their finances are a little different to a more general issue of living off 'borrowed' money.

i rely heavily on my interest free overdraft because that way i get to put money in savings - and a sudden change for me would require me to pull out money from my ISA, which i couldn't put back in. even though i could make the payments, the bank changing the terms would still get me really mad!!

Shoshannah

melancholly wrote: »

they've changed the timing of it - it was meant to be a reduction after a set number of years and now it's less. it's the moving the goal posts that is unfair - as well as the sending out of multiple letters with conflicting information so that no-one knows where they stand. i'm not with HSBC but after all the mess they have made in the last two years, i would encourage anyone with them to change to a different bank.

Oh right, I remember all the news about it now. I have an overdraft facility up to £1750 but very very rarely dip into it. I suppose I should invest it but I like having it there for emergencies.