Credit Card Options

AdamH25

Hi all,

I recently posted in 'debt free wannabee' seeking some advice.

Due to my bank HSBC charging me extortionate charges almost weekly now, its starting to get ridiculous to keep my balance positive.

My monthly income is around £500 give or take. My expenditure is only around £150-£200. But the charges from HSBC are killing me.

I'm looking for a credit card in which I can transfer about £500 to my HSBC to cut out these charges and finally clear the account.

I have never owned a credit card, so a little unsure where to start. Where would be best to start?

Any advice will be great.

Thanks

Adam

Tixy

To be honest your chances are very slim of this being an option.

Only a few cards allow you to transfer money from a credit card into your current account, these are mbna backed cards, post office cards and an M&S card.
As you've never had a credit card and your income is low then your chance of getting one from one of these mainstream lenders is very slim, most people find either they need to get their first card either from their bank or from one of the subprime lenders.

Do you have an authorised overdraft with HSBC? What is the balance on the HSBC account? what are the charges for? going overdrawn? having items bounce or what?
If you have £300 spare a month then you should soon be able to get out of this cycle of charges won't you?

Suarez

So what's happening to the spare £300?

AdamH25

Charges from HSBC are overdraft fee's/interest/return fee's.

I have a further £223 to be deducted on the 9th of June, which is a combination of overdraft fees £100, and return fees £120 + interest.

I dont have an agreed overdraft, I've never gone overdrawn or had any money troubles until I lost my job earlier in the year.

HSBC are charging me £50 every time I go overdrawn, or make a transaction whilst being overdrawn. In an ideal world I would stop making transactions, but I need my car running as its used for my job.

The 'spare' £300 is going towards fee's every time I'm paid. Which clears my account. But then, I receive a phone call saying there have been more charges incurred, and will be deducted next month. Creating a vicious circle.

I have tried to contact HSBC to resolve this and come to some sort of arrangement, but never had any success. As I'm new to all this I dont know what to suggest or do and there walking all over me.

Thanks

Adam

balmk

have you asked your branch for an agreed overdraft?

Tixy

So your charges are more than £300 a month?

What are the returned items for? do you have DDs set up? what for? can you cancel them as a starting point.

If you are only earning £500 a month have you checked if you are entitled to any benefits?

HSBC won't agree to an overdraft or credit card now you've been in this situation for a while. You might want to consider opening a new basic bank account with a new bank and using that as your current account. Then have your income/benefits paid into that account and you will have proper control of your money. So you have a clean slate for the new account - obviously make sure you always have enough money in that account and keep an eye on the balance so the same thing doesn't keep happening.

Then you can write to HSBC and make an offer to repay any overdrawn balance/charges at a rate you can afford each month until its fully paid off.

AdamH25

Thanks again for the quick replies.

Charges are usually between £200-300 a month. The return fee's are where a direct debit is taken, but HSBC decline the transaction, then charging me £60 for doing so.

Have checked benefits, but not entitled to any as working more than 16 hours a week.

I have written to HSBC & emailed twice regarding fee's, several weeks ago now, but no replies.

Where should I write to to request this repayment option? My local HSBC?

Thanks again.

Adam

Ralphy101

From the things you have already told me regarding Job loss - remainder of wages covering charges.

you would be best to look at http://www.financial-ombudsman.org.uk/publications/technical_notes/financial-hardship-unaffordable-lending.htm

Your bank now has a duty - to mitigate your hardship the best way they can.

Have a read of the link i sent you then contact your bank - and ask for help under the fiancial hardship rule.

They can do all sort - like freeze charges - I have a freind to whom had his overdraft cleared - after losing his job.

Tixy

Once you have a new account set up elsewhere then write to the central address for HSBC to offer a repayment plan you can afford.
But you need to set up a new account and have your wages paid into that as a first priority.

Can you increase your income at all? work overtime or get a second job to help?

AdamH25

I wrote to HSBC several months ago requesting charges were frozen in order to repay my overdraft when I lost my job in February. I never heard from them regarding this. Clearly they took no notice as I'm still being stung by charges.

I will look into opening a new bank account.

thanks

Adam

Ralphy101

AdamH25 wrote: »

I wrote to HSBC several months ago requesting charges were frozen in order to repay my overdraft when I lost my job in February. I never heard from them regarding this. Clearly they took no notice as I'm still being stung by charges.

I will look into opening a new bank account.

thanks

Adam

Then you need to take this up with the FSA pronto!