HSBC overdraft

L99

I was just wondering if someone could explain the new hsbc overdraft charges. I have a £4000 arranged overdraft and I’m aware the charges are going up to 40% but I also read that being in an unarranged overdraft there would be a maximum £20 a month charge. Surely this means I would be better off cancelling my arranged overdraft and using an unarranged one. Sorry if that is a stupid question, I don’t understand it all 

monetxchange

I don't think it works like you just choose an unarranged overdraft as a package as such. I think an unarranged overdraft is just when you go over your overdraft limit by mistake (so say your limit is -£50 and you go to -£55). So they wouldn't give you a £4000 unarranged overdraft, as that would then be an arranged one!

The bigger question here is why you're always £4k in the hole and what you're plan is to get out of that. If you post an SOA, everyone can help. With the fees going to so high and overdrafts being a precarious debt as they can withdraw them at any time, you need to clear it.

AbundantBudget

If you cancel your overdraft HSBC will demand the total amount to be paid at once.