HSBC to increase overdraft rate to 39.9%

YorkshireBoy

FIRSTTIMER wrote: »

I am with First Direct, same situation 39.9% is ridiculous. I think the only way forward these days for a buffer is 0% purchase credit cards - I currently have a barclaycard one having had a Tesco one before that. That is my safety net these days instead of overdrafts.

It's not the only way. Another option is to create your own safety net by moving some of your savings from a savings account into the current account. The loss of circa £15 interest per year is a price worth paying. You just need to see £500 or whatever as your zero point. Don't have any savings to move?...then people really do have some serious problems.

born_again

It's nice to see people say that they want a solid brick wall @ zero to stop going over limit.

Yet in my experience of talking to people when transactions are declined. Its always WHY DID YOU DO THAT as I was going to transfer some funds in before the end of the day.

Maybe banking needs to take step backwards 30 years. It was much more simple then. Everyone knew and did not question that if you overspend you get charged for it.

If people are not happy to pay the 39.9% interest then there are some options.
Don't have a overdraft, Don't overspend, Know your account balance and what is going to come out.
& if you are in a overdraft now. Get a loan with a lower rate of interest to get out of your overdraft.

Zero_Sum

Heng_Leng wrote: »

Some people are just hapless with money.

I have a friend who I've tried to help their finances (switch providers, change bank account types etc) on a number of occasions. Helped them to convert their bank account to one with no declined payment charges a few months ago and I've just got them to agree to move to sim only as their minimum phone term is ending.

Mobile phone contracts, one of my biggest bug bearers.

FiL is on benefits (just biding time for a couple of years for pension) gets a new phone every 2 years after contract is up. Problem is he's a bit of a technophobe so doesnt really know how to work the one he has. Ive tried to reason with him that getting a new phone for the sake of it is just pointless & would save money going sim only for a couple of years. Its like banging my head against a brick wall. The response is just "...but im getting a new phone"
The sad thing is, its almost like he looks down on me cos ive bought my phone outright & plan to keep it for at least 5 years before looking to change. He's chucking money down the drain he doesnt have whilst im saving cash & thats viewed in a negative manner. Its just mental.

Ben8282

YorkshireBoy wrote: »

It's not the only way. Another option is to create your own safety net by moving some of your savings from a savings account into the current account. The loss of circa £15 interest per year is a price worth paying. You just need to see £500 or whatever as your zero point. Don't have any savings to move?...then people really do have some serious problems.

Yes I like this idea.