HSBC student accounts?

GigglePig_2

Hello, could do with some advice about my HSBC student account. I opened it when I started uni (about 6 years ago) to get the interest free overdraft, and was told it would be interest free for (I think) five years after I graduate but the limit would decrease each year. I have been very good at paying off a small amount each month since I graduated, and not used it so thought I was pretty much getting there. I have just found out that they switched my account from a student to a current account last year and I have been paying 19.9% interest on it since then! I know its my fault for not keeping a closer eye on my accounts, but as I never use it and its all online I just forgot about it... anyway all the money I have paid off for the past year or so hasn't covered the interest payments so now I owe almost as much as I did when I first took it out

Just wondering if anyone knew anything about these accounts and whether I am right in thinking I should have five years after I graduated to pay it off or whether I am mistaken.

I could also do with some advice about what to do now! I think nearly 20% interest is crazy... should I be transferring the balance to an interest free credit card and try and get it all paid off in a year?

Many thanks for any help you could give!

debtfreehorizon

Hi there,
I had an HSBC student account a few years ago. They usually give you 1 year to pay the balance off from the date of your graduation. In your current situation, apply for a super balance transfer eg mbna, and transfer your overdraft amount onto it for a 3% fee, should be 0% interest for 12 months, giving you time to pay it off.

DFH

KrazyKel

I graduated from Uni in 2008, and my interest free overdraft came to an end a few months ago.
They also changed my limit from £1500 to £1100, But got a letter informing me of this quite a while before it happened

ses6jwg

santander do a 1 year interest free overdraft if you switch

Sharon87

HSBC can change the terms of the overdraft whenever they want. When I took my overdraft out hey said 3 years, reducing the interest free portion by £500 each year. Then last year of uni they informed me it was going to be 2 years instead.

You need to keep an eye on any accounts or debt you have and know the APRs.

19.9% APR is about average for an overdraft, but you can always get a 0% credit card for balance transfer or one for spending and use cash to pay off the overdraft

crispy_chris

My student account was opened in 2003 and I was told the interest free overdraft would come to an end 3 years after graduating, which it did. I think you may have been mistaken that it would remain interest free for 5