Closing an overdrawn current account?

Hi - glad I've finally signed up to this site, but worried it might be too little too late. Same old, same old, gotten myself into some difficulties and need to try to find the light in the a couple of options open to me at the is to offer token payments to creditors and the other is to set a DMP. Been to my bank today - HSBC....chocolate teapot to say the least! Their message? Hang on in there...things will get better.... Not before I lose the house and all credibility it won't!!
Basically I would like to gather some advice on changing my account if I go down the token payment route. I would need to do this as I have 2 credit issues with my own bank and so I need a clean break. However, I am in my overdraft (but not over it yet!) and so worry that they won't let me close the account down... does anyone have any experience of this please??


  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
    Hi Earwig,

    Welcome to the boards.

    HSBC won’t let you close your account when it’s overdrawn. There is nothing stopping you just opening a new account at another bank though.

    Once you have your new account open, you would need to make arrangements for your wages to be paid into your new account and also any priority direct debits (mortgage, council tax, gas etc to be debited from there.

    This means HSBC wont have access to your money, so then you can make arrangements to pay your credit cards & overdraft. The amount you offer these needs to be based on your budget and an affordable amount.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • earwig1971
    Thanks - so I would just consider the overdraft as another creditor and offer it a token payment in line with the others?
    And so it would be better for me to open a new bank account and self-transfer the DDs rather than do an account transfer through the new bank's system? Just worried on timescales that I don't accidentally default on a payment as I'm just about keeping out of arrears at the mo through savings.
    Thanks for the heads-up though...
  • notenoughcash
    Open two accounts, one for paying bills and one for spending. It's best thing I ever did and will continue this way forever! I worked out how much I need in my account to cover all DDs and cheque payments I make each month, and how much I need to live on each month. The amount I need to live on I transfer to my second 'basic' bank account and (sometimes painfully) make myself stick to this amount every month. The rest stays in my main account so I know there is always enough in there to cover my bills so no worrying about returned payments or bouncing cheques (I keep the card for this account in a safe place so I'm not tempted to use it if I'm out but it's available if ever I NEED it). There's also a bit more left over each month, half of which I'm saving and the other half goes as extra payments towards my debts. So my debts will be repaid in half the time, I'll have some money saved up for a small holiday to celebrate it and I'll never need credit in my life ever again!
    Debt busting! Jan 2014 £7632.50 £7445.80
    Belly busting! Jan 2014 12st 2lb 11st 11lb
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