Able to pay off overdraft for time being but afraid to do so

theone999

Hi, I have an account with HSBC that has been in almost permanently overdraft for about 3 years?? now. 1 year ago I got a warning that I needed to show monthly payments in (I had been previously unemployed / underemployed) for a while and the utilisation % had been rising over time. Before I became unemployed 2 and half years ago, my job was paid OK and HSBC even gave me a overdraft limit raise after I left uni.

Anyway I started new job (different field) 1 year ago and have paid in monthly the sum HSBC wanted to see relative to how much debit I was in but the job was not well paid and low skilled so the utilisation % of overdraft has stayed constant (approx 70-80%).

I have now gone back to uni for a 1 year course so I will have some govt money, and my parents have decided to also give me money so I can fully concentrate on what is a technical programme with good employment prospects (I had previously a useless Arts degree)

Anyway, for the first time in years, I would be able to choose not to use the overdraft facility if I didn't want to pay monthly interest. I am afraid that if I didn't use the overdraft this year, it could be taken away from me in the future. I'm not really working this year, so the lumps sums of money are for the next 12 months.

Do you think I should transfer money to my account at different bank so the HSBC account will continue to be overdrawn and the HSBC collects it's interest payment from me? If you think I should pay off some of the overdraft, how much utilisation should I keep to ensure the entire overdraft facility will still be available for me in the future? I'm thinking a 55% utilisation rate could allow me to keep 100% of overdraft limit?

[Deleted User]

Pay it off and become richer, thereby reducing the need for an overdraft.

You could always open a second account with an overdraft if you're that worried.