Halifax Overdraft student

Lolowens

Ive recently graduated (July 2012) and have a whopping overdraft with Halifax. I have a year after I graduate to pay off the overdraft, and have only recently found a full time job.

They are going to charge £1 per day if I am up to £2000 into my overdraft and £2 per day if I am over £2000.

I am hovering around the £2000 mark at the moment but with a poor income and rent and bills to pay I don't see how it will be possible for me to pay off £2000 before July.

Does anybody have any tips/advice on what plan of action I can take? I've called Halifax and they do not offer a graduate account, and no other bank will take me as I haven't had my student current account with them.

I'm thinking if I take out a loan over 12 months, this will be more expensive than if I get charged £30 a month for being overdrawn?

Thanks
Laura

opinions4u

First of all, £30 a month for a £2000 overdraft is about par for the course. Call it interest or call it £1 a day, you'd expect to pay the same.

As your debt (hopefully) reduces then £1 a day compares poorly against other banks.

The best suggestion I can come up with is a 0% credit card for purchases. Put all your spending on there (and I mean normal spending, not extra spending), pay slightly more than the minimum monthly payment for each bill, and make sure you reduce the overdraft accordingly.

In your position, I'd try to stop spending for the next 5 months and get the debt down to zero.

grumbler

Lolowens wrote: »

Ive recently graduated (July 2012) and have a whopping overdraft with Halifax. I have a year after I graduate to pay off the overdraft, and have only recently found a full time job....

Graduate Accounts 2012/13 Cut the cost of post-uni banking

Lolowens

I have read both links, thank you. But I am unable to swap to another bank account which has been advertised, even though theyre overdraft plans seem much better than Halifax's.

I'll look into the 0% credit card thank you. Maybe putting petrol and food shopping onto that and paying it off gradually bit by bit will be more effective than trying to take a HUGE bulk of my monthly salary to clear a little of the debt, and then living off buttons.

Thank you again for your suggestions.

grumbler

Why are you unable to open a graduate account with another bank?

Lolowens

I called a few banks (RBS, natwest, co-op) and because I haven't taken my student account out with them when I started university, they wont allow me to take out a graduate account with them. Their graduate accounts are only available for customers who have a student account with them already.

grumbler

I remember having randomly checked Lloyds for someone asking a similar question:

To apply for the Graduate Account you must:

• be a permanent UK resident and have confirmation of graduation,
• have graduated within the last 3 years with a degree from a UK based university,
• transfer your current account from your existing bank if you're not already a Lloyds TSB customer,
• pay at least £500 into your account per month (if you are moving your account to us).

Natwest do say:

Graduate Accounts are available only to permanent UK residents who:

• Have held a Student account with us;

It's always easier just to check a website instead of calling.

iAMaLONDONER

Lolowens wrote: »

I called a few banks (RBS, natwest, co-op) and because I haven't taken my student account out with them when I started university, they wont allow me to take out a graduate account with them. Their graduate accounts are only available for customers who have a student account with them already.

What about Lloyds and HSBC?

DragonQ

That's nonsense. I have a Graduate account with Lloyds TSB but never had a Student account with them. All they had to do was create a Student account for me and immediately convert it to a Graduate account, in branch.

Maybe they're not very strict on their T&Cs (or they've changed recently).

grumbler

What is nonsense?