letter from HSBC

ak121078

Hi all

I have recieved a letter from HSBC saying my credit card is over its limit ( which it is) and also saying something along the lines of that if I cannot afford to pay my credit card, I should cut it up, mail it back to them and then phone them to provide a proposal to repay the amount owed... is this some kind of payment plan?

I am struggling a bit in paying the credit card and this payment plan does sound appealing. Has anyone done this before?
What are the disadvantages? will it affect my credit rating?

Many thanks!

AK

PNPSUKNET

if you are struggling then get help now from them, if ignored they will default you

ak121078

PNPSUKNET wrote: »

if you are struggling then get help now from them, if ignored they will default you

Hi PNPSUKNET

Dont get me wrong, I dont plan on ignoring them, I was just wondering how taking them up on their offer will affect my credit scores etc

Thanks

AK

PNPSUKNET

if your not paying the recommended amount, it will go downs as an AP

Venusflytrap

You need to work out what your outgoings are, if you have any excess income left by month end, prioritise your debts and how much you can afford to repay per month.

Would advise that you get in touch with independent advisory orgs like CAB to discuss your debts and how you can approach repaying them. As the other poster advised, may also be worth getting in touch with HSBC to agree on a repayment amount that you can afford and commit to.

You may also want to post how much you owe/credit limit, APR and how much you can afford to pay back per month. This way other more experienced members can offer more specific advice.

Mikhail

ak121078 wrote: »

Hi all

I have recieved a letter from HSBC saying my credit card is over its limit ( which it is) and also saying something along the lines of that if I cannot afford to pay my credit card, I should cut it up, mail it back to them and then phone them to provide a proposal to repay the amount owed... is this some kind of payment plan?

I am struggling a bit in paying the credit card and this payment plan does sound appealing. Has anyone done this before?
What are the disadvantages? will it affect my credit rating?

Many thanks!

AK

Ask them to send you a special HSBC scissors!:rotfl:

Shelldean

Hi don't know if this will help or not, they may not 'help' all customers this way.
But i was struggling to make payments to my HSBC card, the card wasn't over limit nor had i missed a payment. Husband was also in the same boat. I called them and explained my problems, said I didn't want to default but would soon ahve no option but to. They were REALLY helpful, was kinda shocked at how helpful they was, esp as we'd not even defaulted!! They put both OH and myself on 2.9% for 24 mths. It's really given us the breathing space we needed. We could reduce our payments to the minimum but we've only reduced them a bit from the nomral payments, to ease the pressure on ourselves. Previously we was making the minimum payments and 99% of that was interest menaing we was never really going to clear the debt. This reduction in interest means we're actually making a dent in the debts. And HSBC are still making money ( just not as much) Kinda a win win situation??? I spoke with the credit card dept in Southend.

drewwhonumba2

Hi.

They will put Arrangement to pay markers on your credit file (not great but not a terrible thing either)...theres some good thereads on here and consumer forums about it