Paying off overdraft

Mintpea

I got an overdraft with HSBC as a student which ended up being £1500. Since graduating I've lived in it perpetually. Over the past year I've got into an awful habit of going over the limit. It's become a bit of a vicious cycle as money I pay in overdraft charges often mean that I end up going over the limit again the next month. I've ended up burying my head in the sand about it, not opening letters from my bank/not checking my balance etc. I live in constant fear of them cancelling it suddenly, something I recognise they have every right (and every reason!) to do.

I bit the bullet today and went into HSBC to talk to them about it. The lady I spoke to has made me another appointment for Friday. She said my first option would be to take out a personal loan with them to cover the overdraft and then cancel it. Is this really my best option? Also, I worry that my desperately poor money management in the past probably means that I will be declined for a loan. I have no other debt and I'm employed full time. What other options do I have?

innovate

A loan is with almost 100% certainty cheaper than an overdraft. The HSBC guys will work out how much you would need to pay, so you can compare for yourself.

Good you have made a start sorting your debt - - keep going, it will soon be paid back!