In debt with the bank.

majorstare

My first post, so be kind.

I was made redundant this time last year and quickly got a job within 2 weeks.

My current job is not paying anywhere near as much as my last job, infact its getting worse during the last 4 months, now im slowly getting in dept with my bank and credit card. Iam looking for alternative employment with little success at the moment.

I hardly have any money to live on after all the bills have been paid (mortgage etc).

I owe roughly £2500 on a credit card and i have just gone over my OverDraft with the HSBC, so i owe them roughly £2000.

What are my options?

Can i take a managable loan with my bank to give me some equity till i get a new job and back on the mend.

Any advise would be helpfull, iam getting very depressed and have never been in this scary posotion before.

deemy2004

You could transfer your HSBC card onto a 0% credit card i.e. such as Halifax One, MBNA, Egg.

Also Egg and MBNA allow you transfer to your current so you could also clear your overdraft.

Though ! going over your overdraft will impact your credit history, it is very important to stick to limits, and to make your payments on time !

frepol

Take care with that overdraft and I would be reluctant to let the bank know too much - especially if you are going to end up defaulting in the near future. The reason I'm saying this is that the Bank will look out for its own interests first and you could be in that horrible situation where you go to the cashpoint on payday only to find that that you can't get any money out because they have cancelled your overdraft and that the direct debit for your mortgage has bounced.

If it is likely that you are going to default, I would suggest that you open up a new bank account into which your wages would go that is not connected in any way to your present bank. Many a person has been caught out on this one!

majorstare

If i open a seperate account for my wages, i'll still have to pay my mortgage/bills from the seperate account?

How would this help me?

deemy2004

because your debt with be with the first bank and not the second bank thus they will not be able to freeze your account which has the wages going into it.

majorstare

Ah, gotcha

Then pay off the HSBC overdraft when funds allow.

Only downside to this is, the new bank account may get into arrears if i cant get a new job soon enough (which pays better).

Nickynoo1

Hi majorstare,

I'm posting because as I'm reading this i am getting worrired about you. It sounds as if everything is based on you getting a new job. But until this time comes, and it could be quite a few weeks what with christmas and new years, will you be getting deeper into debt?

I'm worried that the longer it takes you to find new employment the more debt you will rack up. Have you done a budget and cut out all unnecessary spending. Can you sell anything, get a second job, or a lodger just to see you through so that you do not increase your debt.

I hope you find your new job soon

Nickynoo1