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Help with student overdraft account!
Rossy10
Posts: 9 Forumite
Hi...
I have a £3000 student overdraft account, which is currently in the post-graduation year of being interest free.
As of July 2010 Halifax will start charging interest @ £2 a day, or £1 a day if I get this down to £2500.
I've only had a graduate job a couple of months so haven't managed to save any of my salary yet!
I think i'll be able to save probably £1500/£2000 by July but my question is what's the best option to do with the rest?
£1 a day= £30 a month, so would this be more/less expensive than transferring it to a loan of some sort, etc?
Help please
I have a £3000 student overdraft account, which is currently in the post-graduation year of being interest free.
As of July 2010 Halifax will start charging interest @ £2 a day, or £1 a day if I get this down to £2500.
I've only had a graduate job a couple of months so haven't managed to save any of my salary yet!
I think i'll be able to save probably £1500/£2000 by July but my question is what's the best option to do with the rest?
£1 a day= £30 a month, so would this be more/less expensive than transferring it to a loan of some sort, etc?
Help please
0
Comments
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Are you able to move to a another bank with more generous terms... eg lloyds and others do staggered interest free overdrafts up to three years after graduation?0
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Are you able to move to a another bank with more generous terms... eg lloyds and others do staggered interest free overdrafts up to three years after graduation?
Whilst speaking to Halifax today, I asked them if I was able to transfer this to another Bank and she said the balance would need to be cleared first?
Is this correct!?0 -
Anyone know about this please!?0
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I believe some banks will match your existing overdraft limit but with much kinder terms. I'm with HSBC, I graduated in 2002, and I still have a £1500 overdraft which I use most of most months (I'm working on this!). I pay interest but it's about £12 a month which is more reasonable than £30 a month. It's worth asking other banks, especially if you're looking for an account which you'll pay your wages into each month.0
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Brilliant! Going to do some Bank shopping tomorrow.
So, can Halifax transfer a 'debt' to another bank? I'm not sure how this works!0 -
This is how I would do it - you open your new bank account with a matched overdraft limit. Transfer over all your DDs and get your wages in new account. Then after 1st pay day, clear overdraft on old account with wages/new overdraft, then close old account. Well, that's how I'd do it, but that's only my thoughts.0
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Ask at the other bank, maybe they will have a 'switching' service or will setup your new overdraft first and you can use it to pay off your old one.0
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