HSBC Graduate account ending- no longer interest free overdraft

pingtiao

I need some help.
I'm a doctor with a decent salary amounting to take-home pay of around £1800 a month which goes into my HSBC account.
This was a graduate account, but as of next month (I think) this runs out and becoms a normal account. This means my interest free overdraft also expires, and I will now have to pay 15.9% (I think) APR on anything overdrawn.
Unfortunately what with mortgage, baby and wife on mat leave I am overdrawn a small amount (<£250) for most of each month.

Can someone advise on the best route forward?

Do I
1. Switch to another provider (First Direct? They seem to be the best accoring to the excellent MSE Compare Best Bank Accounts page

2. Contact HSBC and try to arrange some interest free overdraft to retain me as a customer (been with them for 30 years!)

Cheers in advance

Joe_Bloggs

The best route forward would be to pay of your overdraft.
250 at 15.95% for a whole year is 39.75 per year or 3 pound 31p per month, 10.6p per day.
If you read around on this site you can easily save more than this by getting more value for your money.
J_B.

jonesMUFCforever

OP I can see why you chose medicine and not accountancy as your occupation.
Surely you can afford to repay the overdraft by applying for a Graduate loan?

You won't get any more freebies from HSBC - you have been reeled in and you are now stuck in the net UNLESS you apply for another account with another bank who might offer an interest free overdraft - I'll leave you to do the hunting.

Debt_Robot

jonesMUFCforever wrote: »

OP I can see why you chose medicine and not accountancy as your occupation.
Surely you can afford to repay the overdraft by applying for a Graduate loan?

You won't get any more freebies from HSBC - you have been reeled in and you are now stuck in the net UNLESS you apply for another account with another bank who might offer an interest free overdraft - I'll leave you to do the hunting.

Let's keep it cordial, friendly and non-judgmental for the newbies, please

to the OP, when did you graduate? I am with Natwest, not HSBC but I have an interest free O/D as well.

Please call HSBC and ask them if you will be recharged fully. Call them first, speak to someone then come back and let us know what they said.

Good luck

x

jonesMUFCforever

It was meant in jest.

Sharon87

are you sure it's 15.9% interest? My HSBC account (was graduate one) is at 19.9%.

If you're not in it that much, it's nothing much to worry about, only a few quid a month, but if you can try and stay out of it by making cut backs for a few months that would help you. Or you can get a 0% on purchases credit card and use that for spends and use cash to pay off overdraft, ONLY if you are disciplined though.

WestonDave

Being less than £250 over drawn means that you only need to find £20 a month to clear this and not have a problem. However if you have to pay interest that obviously makes it harder so I'd be looking at a 0% on purchases credit card which will enable you to leave a balance on the credit card for up 12 months with the corresponding amount being saved either in your current account to keep it in credit or any excess in some kind of savings account. Having that credit card cushion will stop you having to pay interest on the £250 while you clear it.

Meanwhile get yourself over to the debt free wannabe board (you have a debt of £250 to clear after all) and do a SOA (Statement of Account - full details over there) and let them go through your spending habits with the fine toothed comb! If they don't find you £40 a month savings I'll be surprised, and that way in 12 months you are clear and stress free.