help! student overdraft expired! 11 June 2008 at 3:57PM edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts 2 replies 1.7K views

brownsugayaz

Hey all im new to this site so sorry if this has been repeated, i couldnt find anything

can anyone advise me here?

i finished uni last year...and my overdraft expired may 2008...iv been emailed by my bank saying that "normal charges apply"
what can i do?
currently i am not working, I had my baby shortly before i graduted last year (i sat exams whilst preggers!), so im not working, im at home with my little one. my partner works, but with his wages we are currently only just making ends meet

can i switch accounts...or will the bank offer me anything...some work opportunities for me have come up and I hope to be in employment in about 6months + as most of these require training and i need to settle my baby into childcare etc

please help!! im livin la vida BROKA!!!!

Yas xxx:money:

ldn-100

You can move student/graduate accounts even after you have finished studying. Shop around. Lloyds TSB for example give you 3 years after graduation of interest free overdaft. The only potential problem is getting your new bank to match your old overdraft!

whowants2brich

Firstly, yeah, go for a graduate account. That should allow you to keep your interest-free overdraft for a year or two. Ask your current bank (where you had the student account) and they may well be able to help you.

If you can't get a graduate account, and the overdraft seems to be disappearing, see if you can stooze for 12 months, take out a credit card and balance transfer £2k-£3k depending on how much you need. Pay the overdraft off, and put the rest into a savings account. This will help you to pay the first few monthly minimum payments (around £60 per month) until you have a job and decent income.

The only warning I'd put here is that you have to pay £200 a month into a savings vehicle that you are not allowed to touch for the full 12 months. That would give you £2,400 + interest with which to then pay off the balance transfer just before the 12 months 0% interest rate expires.

Oh, and the Halifax / A&L / Nationwide / Barclays / HSBC etc - they all do decent regular savings accounts. If you get one which doesn't allow withdrawals for 12 months, good.

Good luck!