Graduate account(s) - Advice Required

tommymurph

Hello,

Got into a bit of a sticky situation regarding student accounts (which are now graduate accounts, or at least they should be). I graduated from a 4 year university course last July and have an account with RBS (from online banking account details it is listed as a "student current" account). The OD limit is £1,800 and this is my main account where I have my modest current temp wages paid into every week (£200~ or so per week), so my balance is usually between £1,600 and £1,800 unfortunately.

My other account is a student account with Halifax with a balance of £1,500 and an OD limit of £1,500.

The first problem is that I'm not even allowed to have 2 student accounts, I switched from Halifax a couple of years ago to get the free £100 bonus from RBS, and for whatever reason Halifax didn't close my account with them.

I should also add that my Halifax account says my OD limit will be reviewed in November 2009.

I'm basically just a little worried that I need to start bringing down my RBS OD limit, but not sure when and by how much. Also at the back of mind is if Halifax find out I have a second student account, they could demand repayment of my OD with them, but I have no means of payment.

Given the current job climate, I'm just temping just now, which is obviously not guaranteed for any length of time, and doesn't pay amazing rates.

I need to clarify with RBS and Halifax when exactly I need to reduce my OD limit and by how much, but am scared to contact either incase they require repayments sooner than I realise.

What would happen if Halifax demanded repayments that I couldn't afford?

I'm pretty sure no other bank would give me an account, but an ideal situation would be to transfer both my current overdrafts to a third account with an OD big enough to compensate for them, and have a strict, but realstic repayment structure in place.

Of course things would be a lot better if I had a full-time better paid job, but like I said earlier, it's tough just now.

What sort of trouble may I get myself into for having 2 student/graduate accounts at the same time? How does this affect my credit rating? Are there any banks that would be willing to give me the large OD that I would require (interest free too?)

Is anybody else in a similar situation?


Thanks for any help!

Tom

456789

If they haven't noticed so far they probably won't notice now either

However your Halifax account only remains a student account until July this year - then it will become a reward account and the OD will either get cancelled altogether or they will start reducing it slowly (same will possibly happen with RBS)

I need to clarify with RBS and Halifax when exactly I need to reduce my OD limit and by how much, but am scared to contact either incase they require repayments sooner than I realise.

You need to contact them right now - if they need the repayments quicker then you can come up with some sort of plan to pay it off rather than ignoring it and getting into more bother

What is your living situation? can you cut costs and start paying off the overdraft

Try posting a statement of affairs in the debt free wannabe forum they can help you budget their

tommymurph

456789 wrote: »

What is your living situation? can you cut costs and start paying off the overdraft

I'm renting in a flat with my partner just now. My partner pays rent & council tax and I pay the rest of bills.

Always works out that I don't have much left over to think about bringing down either OD.

I'm guessing there's definitely not a bank out there that would consider me switching to them from my 2 current student/graduate accounts. They would offer me an OD that would be large enough to pay off my current ODs but set up re-payment scheme, as long as I commit to staying with them for several years because inevitably I will get a better paid job and pay my salary into the new account, and look into using that bank for mortgages and stuff? I guess that's all in a perfect world only unfortunately!

It would just give me more time to pay off the ODs slowly but surely, as things are now I'll run out of time and have RBS or Halifax start chasing me...

orangeslimes

I think RBS do allow you to reduce it gradually- it definately remains interest free for a year. I graduated in summer 2007 and still have my overdraft of £1250 and they haven't asked for anything back - I also haven't really been using the account that much.

Also don't worry about it saying student on the account statements becuase it does for everyone I know with a graduate RBS account (you have told them you graduated?)

I think also you are best sticking with a graduate overdraft as long as you can as it is interest free etc rather than a new account. Think they might also give out graduate loans? (worth reading up on perhaps?)
I reckon you should try and save as much as you can while you are working though. £200 a week is £1000 a month so you must be able to have something left over after paying bills and food as long as you live frugally?