overdraft expensive?

wallofbeans

ive just got a letter from my bank (hsbc) saying they've done an annual review on my overdraft facility (i dont remember ever having on before though) and as of 7th September I will be have the same £1000 overdraft but now my interest rate on "any overdrawn balance" will be 18.8%

now, is it just me or does that seem like a lot? i think i can get much better rates of interest on a credit card! should i be transferring my overdraft money out of my bank account and onto a credit card? i feel like i might be able to get charged less if the debt is on a CC even without any interest free period!

help!

skyrider007

Yeah get cards with super balance transfer. Virgin/MBNA/Egg hv em I guess.

wallofbeans

ive already got the super balance transfer cards.. im talking about standard credit card rates... surely lots of them are better than the 18.8% HSBC are talking about charging me on anything in my overdraft? if thats what they are talking about doing! v confused!

LongTermLurker

wallofbeans wrote: »

ive just got a letter from my bank (hsbc) saying they've done an annual review on my overdraft facility (i dont remember ever having on before though)
...
should i be transferring my overdraft money out of my bank account and onto a credit card?

Not much help, but how come you have an overdraft balance if you didn't know you had an overdraft?

Cheapest credit you can find is the obvious answer, but overdrafts are useful for the occasional "get me through to payday" moment.

YorkshireBoy

LongTermLurker wrote: »

Not much help, but how come you have an overdraft balance if you didn't know you had an overdraft?

I think OP is saying they don't remember having had an overdraft review before.

OP, you need to address the reason(s) for the overdraft. If you don't, a credit card will almost certainly not be the answer.

For a start, it'll demand a 2-3% monthly minimum payment (you have a choice currently with your overdraft). If you can't meet this without dipping back into the overdraft you're heading for a big fall.