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  • FIRST POST
    • Eilis
    • By Eilis 15th Jul 17, 12:14 PM
    • 42Posts
    • 2Thanks
    Eilis
    hsbc debt advice
    • #1
    • 15th Jul 17, 12:14 PM
    hsbc debt advice 15th Jul 17 at 12:14 PM
    Dear All
    Hope someone can advise regarding my daughters situation.
    She had to resign from full time employment due to a relationship breakdown to care for her family.
    She is in debt and owes money for a HSBC bank loan, and credit card. She is also over drawn.
    She has informed her bank and is in the process of offering a monthly payments plan which is going to be very little.
    I can pay off her over draft but am requesting her to then reduce her overdraft to 0.will she have problems with this? What i don't want is to pay her overdraft only for creditors to come in and take money.This happened recently from her last wage packet.
    How can we avoid this?
    Eilis
Page 1
    • Welshie28
    • By Welshie28 15th Jul 17, 1:24 PM
    • 90 Posts
    • 83 Thanks
    Welshie28
    • #2
    • 15th Jul 17, 1:24 PM
    • #2
    • 15th Jul 17, 1:24 PM
    Hi, if in debt, people will always advise that her main income is credited in to an account with a lender that she doesn't have any debt with. For example, I have debt with HSBC, I started a DMP and changed my account to Barclays. That way my money is safe.
    • sourcrates
    • By sourcrates 15th Jul 17, 1:41 PM
    • 11,545 Posts
    • 11,131 Thanks
    sourcrates
    • #3
    • 15th Jul 17, 1:41 PM
    • #3
    • 15th Jul 17, 1:41 PM
    Never bank where you have debts is the golden rule here !!

    Get her to open a new basic bank account, with a bank with whom she has no debt, if her current debts are all linked to HSBC, then they are a stand alone organisation, so she can pick almost any other bank to open an account with.

    Make sure she chooses a "basic account" they can be hard to find, so you must search for them, there are no credit checks involved, and no borrowing facility either.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 15th Jul 17, 2:10 PM
    • 11,078 Posts
    • 8,257 Thanks
    fatbelly
    • #4
    • 15th Jul 17, 2:10 PM
    • #4
    • 15th Jul 17, 2:10 PM
    I agree with the above. She has already experienced the right of set-off, where the lender has the right to allocate money from one pot to pay another debt with the same organisation.

    You can instruct them not to do it on a case-by-case basis but the better way is to walk away from them and open a new bank account for her income as the two above set out.

    Then your daughter's biggest priority is to get benefits sorted. This can take longer than you think, particularly if it involves your local council. There may also be some short-term help from them with rent and/or council tax top-ups. Search your local council's website for 'discretionary housing payments' (rent) and you may also find something like 'exceptional relief' (council tax).

    Those debts are non-priority so don't rush into throwing money at them when it might be needed for something important.
    • Eilis
    • By Eilis 16th Jul 17, 9:08 AM
    • 42 Posts
    • 2 Thanks
    Eilis
    • #5
    • 16th Jul 17, 9:08 AM
    • #5
    • 16th Jul 17, 9:08 AM
    thank you for your responses.

    She has opened a new basic acc elsewhere so any future benefits will be paid into that.
    Regarding her overdraft with HSBC. Should I pay this off so she can then reduce her overdraft to zero and then close the account. Or can she request her overdraft be put to zero and agree to pay a small amount every month.?
    Secondly, if she agrees to pay her overdraft, credit card and back loan via monthly payments from a different bank account am I right in saying HSBC can not access this account and take more money. Her new account is not affiliated with HSBC?
    Eilis
    Eilis
    • sourcrates
    • By sourcrates 16th Jul 17, 10:53 AM
    • 11,545 Posts
    • 11,131 Thanks
    sourcrates
    • #6
    • 16th Jul 17, 10:53 AM
    • #6
    • 16th Jul 17, 10:53 AM
    Regarding her overdraft with HSBC. Should I pay this off so she can then reduce her overdraft to zero and then close the account. Or can she request her overdraft be put to zero and agree to pay a small amount every month.?

    Secondly, if she agrees to pay her overdraft, credit card and back loan via monthly payments from a different bank account am I right in saying HSBC can not access this account and take more money. Her new account is not affiliated with HSBC?
    Eilis
    Originally posted by Eilis
    Hi,

    If you are willing to settle the OD for her then that would be the best option.

    No, the bank cannot take money from other accounts held with other organisations, as that would be theft.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • TheGardener
    • By TheGardener 16th Jul 17, 12:05 PM
    • 2,090 Posts
    • 1,995 Thanks
    TheGardener
    • #7
    • 16th Jul 17, 12:05 PM
    • #7
    • 16th Jul 17, 12:05 PM
    Stop any DD's or SO's now - then go into the branch of the bank with her where she holds the OD account and get the account closed - pay the OD so they can do that but don't leave the bank until the account is closed. If they refuse to close the account get them to make the OD facility £0.
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