What to do with my £2000 HSBC overdraft?

sdavi3680

Hi, I am wondering what I can do with my HSBC overdraft that would perhaps get me a better deal. I am being charged about £20 interest per month and it is a graduate account. I am in year 3 of the graduate account, so really my overdraft should be down to £500. Right now, I do not have a job (though this should change soon hopefully) so I cannot pay a salary into a bank account.

Do I have any options that would either give me lower interest or even interest-free overdraft? My concern is that because I cannot pay a salary in, banks would not even let me open up a new account with an overdraft facilty. Can anyone advise me on what my options are, if any?

Thanks
Becky

DjSatansfury

Would also like to hear any ideas as im in the same boat.

CrispyUK

To be honest, I don't think you have much in the way of options. All the graduate accounts will have similarly low interest-free amounts in year 3.

You could look at switching banks to whoever offers the lowest interest on arranged overdrafts, but with no salary coming in I think you'll find it a struggle to get a £2,000 overdraft from another bank.

Another option would be to use a personal loan with a lower APR than your overdraft interest, but again the lack of a salary is going to be a problem.

Iamthesmartestmanalive

You will if your lucky get reverted onto a normal overdraft but the banks expect graduates to be paying in their regular wages over 3 years and reducing it by year 3

You have failed to this and they are not going to keep the overdraft open indefinitly on beneficial terms

Either pay it off with a loan or accept you will be going onto a normal account terms