I'm new & need some help please!!

snuggles22

Hi everyone,

I've been reading the threads on here for the past 6 months & thave noticed that everyone is so helpful! And I am definatly in need of some help!!

2 weeks ago my partner recieved a letter from HSBC telling him they would be removing his £400 overdraft as of the 4th of August, we quickly responded to this and offered them £50 a month until the balance was cleared.
Then this weekend I recieved a letter from HSBC, telling me they would be removing my overdraft as of the 28th of August...My overdraft is £250 which doesn't sound a massive amount but each month were trying to hard to keep our heads above water and we have no savings to be able to pay this. In the past I have been terrible with my overdraft, I'll admit I have gone over the overdraft alot! And have paid the charges for it, some months they were over £150! But for the past 9 months i've been below my overdraft and haven't had a bank charge for 8 months!

I'm not sure what to do? We can't really afford £50 a month on this overdraft aswell, but I don't know if they will take any less? Or would they change there minds and let me keep the overdraft? I hate ringing the bank I always find them so unhelpful.

Sorry about my spelling im rushing in my lunch 1/2 hour!

Thanks for reading and any help anyone can give me.:o

Nargleblast

Suggest you do a SOA (statement of affairs) so we can see if you can make any savings anywhere. Ideally you should be aiming for a situation where you do not have an overdraft and do not need one, because as you have learnt, it is so easy to dip into and before you know it the bank slams on the charges, taking more and more of your wages so you find it even harder to pay the bills.....so you dip into the overdraft again...vicious circle.

Is there anything you could sell to raise money and clear both ODs for once and for all?

Also check through the small print of your terms and conditions - are these charges fair and justified? People are now claiming back charges from banks, could you possibly get a refund?

Katie-Kat-Kins

Have they accepted the £50 for your husband's account yet? Why not write to them quoting both account numbers and offer to pay £50 off against both so £25 each, they can see that you are doing what you can then, and you will make a dent on it soon enough.

In the meantime get things sorted so that you are living within your means, post a SoA for everyone to help you out.

Also look into bank charges reclaiming and the latest advice as this might help you clear the debt.

BeautyandtheBeast_3

my OD is up for renewal in september - i hope they dont get rid of mine right this present moment in time - like you they canbe a god send sometimes. Have you tried asking them why they taking it off you - perhaps you can keep it and every month they reduce the OD by say £50 oo somthing manageable? xx

snuggles22

Thank you for the quick replies and your help!

I will definatly do a SOA as soon as I get home from work, and if any money can be saved that would be excellent! We definatly need to sort ourselves out, it is the most vicious circle, everytime we pay a little off anything something else comes along...We moved house in February to save some money and we have saved a little but it would be great if there was more we could save.

HSBC accepted over the phone for his £50 a month payment but we haven't recieved anything in writing yet. So I will get him to chase it and find out what is happening with that.

I will check through the small print tonight aswell, I don't really understand the bank charge reclaiming and if it's on hold or not, So I will read up on that aswell.

Thanks again. x:o

Marthasdad

I had something similar a couple of years ago - it was HBOS and when I rang them they said that they sent the letter to prompt me to call and they could make a gradual reduction each month, but if I had ignored their letter, they would have removed the limit (which was £2,000!!!).

Don't have an overdraft now and don't want one - they can remove them at any time and leave you high and dry!

If they don't play ball - open another account at an unrelated bank (most offer "basic" bank accounts, with no overdraft etc.) and transfer your wage payments and DDs etc. to this one - then you will still owe your bank the money, but they'll have to take what you can afford each month and you are in control.

As an aside - one lesson I've learnt (the hard way!) is (if you have debt problems) NEVER have borrowing with the bank into which you have your wages paid - they are allowed to take whatever they want to offset against any overdue debt - they can literally leave you without a penny!!

Good luck and keep coming back here - they're brilliant!

snuggles22

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details

Monthly income after tax................ 960
Partners monthly income after tax....... 928
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1888

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 11.95
Satellite/Cable TV...................... 14.99
Internet Services....................... 15
Groceries etc. ......................... 80
Clothing................................ 20
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 42
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9.14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1080.08

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................2160......166.......0
Beneficial Loan................4000......187.......0
MBNA...........................2000......60........0
Capital One....................100.......5.........0
Capital One....................500.......25........0
Egg............................800.......30........0
Sky Card.......................500.......17........0
HSBC...........................1000......25........0
Overdraft 1...................250........50.........0
Overdraft 2....................400........50...........
Total unsecured debts..........11060.....615.......

Monthly Budget Summary
Total monthly income.................... 1,888
Expenses (including HP & secured debts). 1,080.08
Available for debt repayments........... 807.92
Monthly UNsecured debt repayments....... 515
Amount left after debt repayments....... 292.92
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,060
Net Assets.............................. -11,060

Ok so here is my SOA.!!

I haven't put the apr on there yet, my O/H is at football and the paperwork box is in the loft...I can't get up there myself i'm to short haha!
I know that the capital one cards have the highest apr so they should be paid of first really.
So that leave us with £192 per month extra?? Is that right and where does that go??

What has just shocked me is the amount we pay out on debt every month...I can't beleive it's really got this bad, this is definatly the day were making some changes.

snuggler x

BeautyandtheBeast_3

Marthasdad wrote: »

As an aside - one lesson I've learnt (the hard way!) is (if you have debt problems) NEVER have borrowing with the bank into which you have your wages paid - they are allowed to take whatever they want to offset against any overdue debt - they can literally leave you without a penny!!

Good luck and keep coming back here - they're brilliant!

Really i didnt know that!! might change banks then!!

snuggles22

An update on the overdraft problem, I have agreed with hsbc that they will reduce the overdraft by £50 a month for the next 5 months until the overdraft has gone, which is tight but means by the end of December I will be overdraft free!
I have also applied for a basic natwest account today, so that I can move my d/d and wages into that account and make sure there is always £50 in the Hsbc account every month...otherwise I know I will spend it on stuff I don't need!

Thanks for your help today...really made me realise we have to make some changes! x

snuggles22

[/QUOTE]

As an aside - one lesson I've learnt (the hard way!) is (if you have debt problems) NEVER have borrowing with the bank into which you have your wages paid - they are allowed to take whatever they want to offset against any overdue debt - they can literally leave you without a penny!!

Good luck and keep coming back here - they're brilliant![/QUOTE]

Thank you for this information...I've applied for a new account today after reading this!

gfplux

Hello snugles22,
Well done you have already taken huge steps to sort your problems. Doing the SOA is very painful but is the very best thing anyone can do if they want to be cured.

Start a spending diary TODAY to find out exactly where you money goes. Knowledge is power.


Total up all your bills that you are paying annually quarterly such as TV licence, Car road tax, Car, Buildings and Contents insurance, Car maintenance, Holiday and Emergency funds, etc. that you show monthly in your SOA. Then open a savings account and pay in that amount monthly by standing order. Then when those bills come along you have the money for them.


Good Luck