HSBC Advance Over-draft

zoominov

Hi all,
Just a question at i've got a £1502.94 overdraft with HSBC and signed up to HSBC Advance which is around £6.00 for the first 3 months i originally rang up them to discuss about my other account which is £7.00 overdrawn and will incur a charge..

What my question is will it be easier to pay of my overdraft with hsbc advance or without i currently pay £23-25.00 a month in charges, HSBC have said as one of the perks i will be given preferential interest rates for my overdraft..

Any help would be appreciated..

Tixy

What APR does your overdraft have now its you have an advance account?
What rate would it be if you closed the advance account.
How much will the advance cost after the first 3months?
How long do you expect it to take to pay off your overdraft?
How much can you afford to reduce your overdraft balance by each month?

You need to know all those to be able to assess which option will work out the cheapest.

zoominov

Tixy wrote: »

What APR does your overdraft have now its you have an advance account?
What rate would it be if you closed the advance account.
How much will the advance cost after the first 3months?
How long do you expect it to take to pay off your overdraft?
How much can you afford to reduce your overdraft balance by each month?

You need to know all those to be able to assess which option will work out the cheapest.

1. 19.9%
2. 17.9%
3.£12.95
4. More that 2-3 years.
5. £50 - If i carry on paying that for 10 months it will be down to £1,000 and become interest free, or shall i pay £150 per month and bring it down to 1,000 after 4 months hmm

What do you think...i called up today and asked about the percentage rate , i have 12 days to cancel it if i need to , the only reason why i got hsbc advance is to clear my overdraft

Given all that info shall i cancel it after 12 days or keep it ?

I could also save as it gives a preferential savings rate...

after 3 months its £12.95

Tixy

Is it interest free below £1000 only if you are an advance customer or even if you are not?

zoominov

Tixy wrote: »

Is it interest free below £1000 only if you are an advance customer or even if you are not?

Yes it is , if you go over £1000 then they charge you interest 19.9%.

HSBC Advance has an initial 12 month contract and is then renewable monthly. <<<< does that mean in the 6th month you can cancel it ?

Tixy

If its 0% under £1000 then I think its not worth the advance fees.

If worst case scenario is that you pay off £50/month and so you pay interest for 10months - the 2% saving on the APR would work out to a max of £25, but the advance account will cost you £134 (3*6 + 9*12.95).

You'd have to keep the advance account for at least 12months.

zoominov

Oh ok now i understand..so its it works out cheaper without the hsbc advance i will cancel it next week..

and have you got any tips on how to clear the overdraft quicker..?