mature student with overdraft already

firepoppy

I'm 25 and beginning a new degree in September. I previously started a degree in 2004 but left the course in 2005 due to poor health. I opened a student bank account in 2004 with HSBC. I had an interest free overdraft of £1,500 and spent up to the limit. I still have the account with them but it is no longer a student account so I am paying interest. I have been meaning to pay off my overdraft but haven't. I have almost finished paying off my ccredit card. (I ran up debts on 2 cards in 2004-2006). Every month when I get paid it lowers my overdraft but I always end up going back to almost the limit.

When I am a student again will I be able to get and interest free overdraft for that amount (£1,500) in my 1st year or a will it be less? If I open a new account will I have to pay HSBC back all at once or can I just deposit some money every term? Or will it have to be every month?

Any advice would be appreciated or any links to any relevant info? Thanks very much.

Lokolo

If you stop using the account the chances are they will take away the overdraft.

If you try and get a new student account they may reject you, they may not. If they do accept you I suspect the overdraft thats already there will go down to 0%.

I have to wonder why you are going to go to university when in debt by so much? Considerig your wrapped up £1500 debt in first year and you have yet to get rid of that....

firepoppy

I'm going to university to get a degree to get a better job and more money. As I mentioned above I've already paid of most of my credit card debt, there's just my overdraft left.

Fire_Fox

But if you can't manage on a full-time wage how are you going to manage on student grants and loans? You can't just stop using your existing current account or the bank will write you a letter asking for you to repay the overdraft in full. Read the terms and conditions to see how much you have to fund the account with each month.

You could try to apply for another student bank account, but you may not be offered the interest free overdraft as you already have quite a bit of used and available credit and you remain in your overdraft permanently - this makes you a poor risk. If you pay off and cancel the cards completely this will probably increase your credit score.

Complete one of these and post on the Debt-free Wannabe board for comments:
http://www.makesenseofcards.com/soacalc.html