Paying off HSBC overdraft (soon to be dorment account)

Ralphy101

Hi Guys

Need a bit of advice..

I have an £1500 maxed out overdraft with HSBC. In the past 1 1/2 or so... have always had my wages paid into the said account.

However realizing i had a debt issue, i have managed to pay off 4 other debts, and now wish to tackle the above o/d.

HSBC removed my debit card and gave me cash card, around a year ago, and in the last 4 months i have opened a step account with Natwest and transferred spending money to the nw account.


Now i want rid of the HSBC account, however. I wish to pay off £70 a month towards towards the o/d.

If i get my wages paid into my Natwest account, would HSBC demand i pay off the overdraft i.e. debt collectors etc. or... if they see im paying £70 a month by direct debit ( from natwest) would they let me be so to speak...?

I really dont want to go down the managed loans route, but wish to start afresh with Natwest and tackle the o/d at the same time .

Thanks.

cifpower

Most banks which offer overdrafts want that accoun to be used as your main account with salary and other credits going in. If these stop then in all likelyhood HSBC will withdraw your overdraft and it will have to be repaid in full.

Ralphy101

okay.. would a way round that... set up a dd from hsbc to NW minus the 70?

heloid

My opinion from reading the boards your best course of course action would be to contact them and advise them that you have moved accounts but will regularly pay x amount. They are certainly going to demand full payment if you don't communicate with them at all.

Other option is to keep your wages going in to HSBC and transfer all but £70 each month in to NW. HSBC will have faster payments SO's pretty soon, but you can always do it manually for now.

onlypaddy

I would keep wages going into HSBC and transfer spends into the Natwest account. If you only take out the Natwest card then you will be more disciplined with paying it off. If HSBC see your salary keeps going in then they are less likely to withdraw the overdraft.