Graduates ‘face new debt charges’

As debt management problems worsen for millions of consumers across the country, HSBC intends to start charging its graduate account customers an annual interest rate of close to ten per cent.

The charges are scheduled to come in from August and while HSBC has not made clear how many consumers will be impacted the figure is estimated to be in the tens of thousands, the Times reports.

A spokesperson for the National Union of Students is quoted as saying: “The period after graduating is tough for a lot of graduates and given the debt students are now saddled with its pretty alarming to think students are going to be hit with a big charge.”

Figures from uSwitch.com released earlier this week showed that UK banks have increased their average overdraft charges by 0.93 per cent over the past six months, which has cost consumers a total of £52 million.