HSBC debt help needed

IMB

Hi, I really hope someone can help, as I'm at my wit's end. I will be looking through the forums properly later, but right now I'm too stressed to concentrate and take things in.

Due to various factors that include family rifts, unemployment and illnesses, I have wracked up some debt (that may be small by most people's standards, but is far too much for me). I'm currently living with my parents, and the past few years have had to help out paying the mortgage on their house as well as bills while we went through some rough times. Things aren't much better now, but we've moved house and my parents now own it outright, so there's no mortgage to pay. However, I'm now left with debt that I can't pay off and my parents aren't in any position to be able to help me beyond throwing some pocket change my way once in a while, as they have their own loan and overdraft to deal with.

I have severe depression and anxiety, and am also dealing with diabetes that I can't get under control. I can't work because getting out of the house is difficult enough unless I absolutely have to, and dealing with people is too stressful in a work situation. The past few months things have just got completely out of hand financially, and I'm spiralling out of control. I've NEVER missed a payment of any kind in the past ten years (since I started having my own finances of note), but I'm going to end up doing just that, probably with the next credit card payment due this week.

I phoned up HSBC to explain I was having problems making the credit card payment last month, and I was booked in to see a financial advisor. At the same time the lady I spoke to put a loan application in for me (which I knew I wouldn't get because I don't have enough incoming cash). The financial advisor didn't actually have much useful to say (in fact she was 20 minutes late for the appointment, and no one knew where she actually was - having plucked up the courage to actually get there in the first place, that didn't do my anxiety levels any good). She basically said I needed a managed loan that wasn't based on credit rating or income, where my credit card and overdraft would be paid off, but I'd lose the overdraft, and my credit and debit card (small price to pay to get this all sorted, really). I needed to phone a number she gave me and ask for customer credit services.

So I phoned the number (I should add that all these employees had heavy Indian accents, which made the process more stressful because I couldn't understand half of what they were saying), asked to be put through to customer credit services and explained why when asked. After being given the run around, I was told that I didn't qualify for a loan (which the lady in my local branch said I would), and when I tried to clarify what they meant, they just kept saying I needed to talk to the credit card services about not being able to make a payment this month.

I was put through to them (I was in tears by now and trying to keep hold of myself through a panic attack), where I explained the situation, was told that I didn't need to make a payment for that month (my parents had managed to find some spare cash and paid the minimum payment earlier that month), so the direct debit was skipped for then, to start up again this month. I said I wanted rid of my card ideally, and he did something (which I think was to cancel the card being used at all), but wouldn't actually explain in simple English what he'd done. I was also told that I could apply to get the interest frozen on my card while I was unemployed and sick, but that it couldn't be done over the phone, and I'd have to write a letter to HSBC to the address on the back of my credit card statement and ask for the interest to be frozen. He wouldn't go into more detail than that. So I set out to do that, only to find there is no address on the back of my credit card statement, and I have no clue how the letter needs to be phrased, or if I need to include any proof of unemployment or anything.

At this point I had a breakdown and haven't yet been able to work up the courage to go into my local branch to phone customer services to find out what the hell is going on. So I have no idea why I didn't qualify for this managed loan thing, what the state of my credit card actually is, and what I'm supposed to do to try and manage the debt I'm in. It's all a complete mess and I can't cope with it anymore. I have too many mental issues going on that make trying to stay positive difficult and I'm heading for a complete mental breakdown, or worse.

I've done the maths and worked out that if I could get a loan and pay off the credit card and overdraft, I could afford to make the payment each month, mainly because it would work out less than it does to make the minimum payments and scratch around trying to find the extra so I don't keep going over the limit of my credit card with the interest charges each month. But of course, I can't get a loan because I don't earn enough.

I've already been through my bank statement and pruned out non-essential outgoings, and reduced my spending (not that I'm a big spender anyway - £10 on a DVD a month is my big personal spending). I've already sold off books, CDs and DVDs worth anything, and I can't sell my computer because it's old and clunky and worth peanuts, and I actually need it.

If anyone could give me any advice, and step by step instructions for what I need to ask for from HSBC to be put through to the right people to help me (I suspect that they'd be able to help me sort this if I could get through to the right people and speak to someone with an English accent), and what kind of help I'm entitled to, I would be eternally grateful.

For reference:

Income: £344 from Income Support
Outgoings:
£170 food, toiletries, broadband, petrol, car insurance
£100-150 minimum credit card payment
£60+ credit card interest (which knocks me over the limit, so has to get paid off)

HSBC Overdraft: £1250
Credit Card: £4000
Student Loan: £2000 (which I'm ignoring for the moment because they're not baying for blood)

*MF*

Hi ... first my apologies, I am not one of those here who can advise you in enough detail to take you thru' what to do step by step, - but I want to assure you that there are those who can and will help, but being a weekend the forum is quieter than during the week.

You have come to the right place for the help you need, and will get it here from other members who have been thru what you are facing.

Runnybabbit

Hi IMB,

Firstly welcome to the board.

I was most horrified reading your post at the antics of HSBC, I know exacty how you feel as I have also been on the receiving end of their advice.

I am quite relieved in one way that you were turned down for a manged loan as these are not normally the right way out for many people, although some here do have them.

Due to your health conditions, there are certain things that HSBC are not allowed to do and I strongly urge you to seek professional help via CAB, Nationdebtline, CCCS etc. They can give you FREE advice and should hopefully be in a position to act on your behalf. The sooner you make contact with these organisations, the better. Under the circumstances (your health) you need to keep stress free and with these people in Indian Call Centres attempting to 'help you' I would refrain from making any contact with them from now on. I would also point out that HSBC only have 'their' own interests at heart, and are certainly doing you no favours.
I can only tell you from my personal experiences with HSBC, please make contact as soon as you can.

I wish you loads of luck
Babbit xx

Ames

I'm not really an expert on the finances, someone else will be along soon though who is.

I'm guessing that the IS is IS for reasons of incapacity? Have you tried to apply for DLA?

I have bipolar disorder and a big part of that is anxiety, I think you did amazingly well to get into the branch and then to hold on through all the phonecalls, using the phone is a big deal for me so I can only imagine how it was for you. You've done a really good thing posting on here though, well done.

If you're on IS though you really should only be making token payments of £1 a month, income support is set at the minimum you need to live off, it doesn't pay enough to cover debt repayments.

IMB

Thank you for your kind words and support, everyone. It's made me feel a lot better about the situation knowing that there are things to do and people who understand and don't judge.

MF - thanks for the reassurances.

RunnyBabbit - I'm contacting the CCCS today to see what they can do to help. Thank you!

Ames - I've considered DLA, but have yet to work up the energy to fill the forms out. I did it once earlier this year for my mum, who has several physical disabilities, and they refused her DLA. It's something I do need to do but I'm a little demoralised about it. Thank you for the kind words and understanding, and also the info about token payments - I had no idea about that, and it's useful to know.

Ames

I understand about the DLA, I've been on it for a while now. If you get an experienced welfare rights advisor they'll fill it in, you've got a much higher chance of success as they'll know the right buzz words to put in.

RAS

IMB

I think you and mum both need the welfare rights advisor. No doubt if there situation was more stable it would help you feel better as well.

With respect to you debts, first you look after yourself in terms of your basic needs, then you pay towards you debts.

Do you have any PPI that is not paying out? OOr bank charges that you can reclaim?

You may not believe it but the refusal of that managed loan was the best thing that could have happened to you as they are a nightmare based on what we have seen eslewhere on this board.

Please please can you open another basic bank account, and get you money paid in there, so that HSBC cannot get hold of your income. Then set up some standing orders to pay towards the debts.

dancingfairy

Would agree with RAS - find a bank you do not owe any money to and open a basic bank account. Tell them you want a basic bank account - no credit checking required. No overdraft, no credit facilities. You might need to spell this out to them as sometimes the banks will try and give you a normal current account which may require credit checking. When you get your benefits paid in this will be your money to buy food and pay bills, what's left after that can be distributed to the people you owe money to , until then they can wait. You need to prioritise rent,food ,electric, council tax, water etc.
If you feel able to make phone calls - CCCS (consumer credit counselling service), National Debtline or your Local CAB should be able to help you. You can even put your details into the online calculator thing at CCCS and it will give you an idea what the best solution for you will be.
Don't worry it'll be sorted - and not from getting 'advice' from HSBC who like any other financial institution will only have their own best interests at heart.
Best of Luck
x df

Bobbinson

Does anyone know the HSBC address to write to please?

I have an overdraft with them and have lost my job so wish to write to them as a creditor to request a freeze on the account (and offer minimal monthly payments) but cannot find anything on their website.

Thanks

Bobbinson

Just as a point of interest, I tried going to HSBC beforehand to ask for help face-to-face and they told me my only option was to apply for their managed loan to pay off the overdraft (which I subsequently was refused). Useful!

Marisco

Don't know if this is any use Bobbinson, but if you scroll down to "Unhappy" and "let us know" there is an address there.

http://www.hsbc.co.uk/1/2/personal/contact;jsessionid=0000g3YNpPS9Wnr5tIgIGyQueCc:11j74lc1v