Turn on thread page Beta
    • Thread Starter
    Offline

    20
    ReputationRep:
    Hello,

    I've currently got £45 left in my bank account from my student loan. Unfortunately, my car has had to have a new clutch which costed me £400, so I don't have as much money as I hoped I would have.

    I have a student account with HSBC; my overdraft limit is £750. My weekly expenses are around £25; and I have to spend around £100 per month for my insurance, television licence and other monthly subscriptions.

    Anyway, I have calculated that I'll probably be in my overdraft by £400 by the time my next student loan comes in.

    Is it permissible for me to stay in my overdraft for a few months until January? Will the bank take issue with this? Have any of you relied on your overdraft? Would I need to put money into my account on a regular basis?

    Thanks.
    • Section Leader
    • Very Important Poster
    • Peer Support Volunteers
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    Section Leader
    Very Important Poster
    Peer Support Volunteers
    Clearing and Applications Advisor
    (Original post by jake4198)
    Hello,

    I've currently got £45 left in my bank account from my student loan. Unfortunately, my car has had to have a new clutch which costed me £400, so I don't have as much money as I hoped I would have.

    I have a student account with HSBC; my overdraft limit is £750. My weekly expenses are around £25; and I have to spend around £100 per month for my insurance, television licence and other monthly subscriptions.

    Anyway, I have calculated that I'll probably be in my overdraft by £400 by the time my next student loan comes in.

    Is it permissible for me to stay in my overdraft for a few months until January? Will the bank take issue with this? Have any of you relied on your overdraft? Would I need to put money into my account on a regular basis?

    Thanks.
    Assuming it's a student overdraft that is interest free and you have an intention to pay it back as soon as you can then there should be no harm in it.Just bare in mind you ll have to make up that £400 shortfall eventually
    Offline

    20
    ReputationRep:
    An overdraft is supposed to be a method of short-term borrowing - basically to cover an imbalance between money coming in and money coming out each month. It's not meant for long-term borrowing, and the bank would want to ideally see the account returned to credit each month, even if only briefly and by a small amount before becoming overdrawn again - a flow of money through the account is important. That said, banks recognise that student accounts are rather different and that students often 'live' in their overdrafts, hence the limit increasing each year you're a student.

    Basically, so long as the account is being run properly within its limits, I cannot see any reason why the bank would have a problem with it being overdrawn for a few months.
 
 
 
The home of Results and Clearing

4,582

people online now

1,567,000

students helped last year
Poll
A-level students - how do you feel about your results?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.