Getting out of my Student Overdraft

treenie01

I am in exactly the same situation.

Halifax don't do a graduate account. They allow you to have your interest free overdraft for an extra year after you graduate instead.

The options they give you is the current account that it automatically turns into with a daily charge of up to £2 a day if you are in your overdraft up to £2999.99 (which mine is).

The other option is to pay £10 a month to add control to your current account so you can stop it from going into an unplanned overdraft (which they charge £5 a day for)

Luckily I have another bank account so I'm transferring everything over to that and hopefully getting a loan to clear my halifax overdraft so I can close the account.

They weren't at all helpful when I asked them for more options I have to say.

opinions4u

treenie01 wrote: »

They weren't at all helpful when I asked them for more options I have to say.

Were you expecting them to invent a new product on the spot, especially for you?

DCFC79

treenie01 wrote: »

I am in exactly the same situation.

Halifax don't do a graduate account. They allow you to have your interest free overdraft for an extra year after you graduate instead.

The options they give you is the current account that it automatically turns into with a daily charge of up to £2 a day if you are in your overdraft up to £2999.99 (which mine is).

The other option is to pay £10 a month to add control to your current account so you can stop it from going into an unplanned overdraft (which they charge £5 a day for)

Luckily I have another bank account so I'm transferring everything over to that and hopefully getting a loan to clear my halifax overdraft so I can close the account.

They weren't at all helpful when I asked them for more options I have to say.

If not already then live within your means, i know some people seem to think its not the in thing but it would help.

treenie01

opinions4u wrote: »

Were you expecting them to invent a new product on the spot, especially for you?

No but I would've thought they would be a bit more helpful in terms of advise on different products they already have. They do not give you any options of what you can do. It is as single as this is what we're going to do, if you don't like it tough!

I have had to use my overdraft longer than I wanted as I took a big cut in wages last year. That has now changed again but I refused to pay £90 a month in charges.

debtcutter

Do you have a spare room you could rent out? Could you downgrade your car to pay off some of the overdraft and reduce your interest?

It sounds like you're in a tough spot so if you're considering a loan, you need to make sure you can afford it. Don't take it out if you don't know you can afford it and make sue you do a budget, a strict one that you stick to (not saying you haven't already, but if not, do one).

You say you'd like a £3,000 loan? Have you looked around to see what repayments are likely to be and then worked out if you think it's manageable and will actually work out cheaper in the long run?

mistersmurf

What's your monthly income after tax?Have you filled out a SOA?You can find threads in the Debt Free Wanabee board that will probably help you too. I've read some creative ways that people have thought up to reduce their spending and make their £ stretch a little further.

opinions4u

treenie01 wrote: »

No but I would've thought they would be a bit more helpful in terms of advise on different products they already have. They do not give you any options of what you can do. It is as single as this is what we're going to do, if you don't like it tough! .

They have three unsecured lending options.

- overdraft
- credit card
- personal loan

If their screen says card and loan are not going to be offered they have nothing to share in terms of advice. There are no options.

treenie01

Believe me, they didn't get as far as looking at my account. I went in the branch (as told to by their online customer service) and they said that the letter states what's on offer. The letter is a standard letter that I'm guessing those others who have discussed Halifax on here have received.

As I've said I'm going back to my old bank and as soon as I can I'm closing the account.

Largoh

So I've been speaking to Think Money, Halifax and some other banks.

Think Money will take on all my Debts for £100 a month until they are clear. £33 a month of that goes directly to them (This will work out cheaper than £60 a month for the overdraft and £25 for my credit card).
Halifax offer nothing that can help.
I have just under a month to figure something out now. I paid off one debt with my Credit Card to get that out the way and lower my monthly payments. I may have found a job closer to home for similar money too, but it's going to take time.

Other banks just offer graduate accounts. I'm thinking of getting a graduate account from Lloyds TSB since they offer to transfer the account from another bank, where-as RBS and Natwest etc want you to have had your student account with them in order to get a graduate account.

*sigh* Stress...

EDIT:
Scrap that. Graduate account with Santander or RBS I think.
Does anyone know if I can transfer my account over with those banks?

unimaginative_user_name

Before you sign anything with Think Money look at CCCS which gives free advice. If you went with them all the money you paid them would go to paying back debt not a mere two thirds.

I would recommend the debt-free wannabe board where people will be able to give you lots of helpful advice from experience.