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PayPlan & Making Full & Final Settlement

Hi all,
I hope all of you are well and OK.

My husband is in an agreement with PayPlan for 3 creditors, all of which are HSBC and he is paying £100 per month. He's been with them since September.

So, this is the accounts he has/had:

HSBC Credit Card £2500 Limit- £2380 at arrangement- Charges frozen- Interest acculating approx 19.8%

HSBC Graduate Loan £19,000- £12800 at arrangement- Interest & Charges Frozen

HSBC Overdraft £1600 Limit £1800 at arrangement- Charges Frozen- Interest accumlating- unsure of rate

Later this year, my husband will be getting a dividend of approximately £2000 and would like to put this towards paying off ONE of the debt, ideally the OD or CC. PayPlan advised against this and said he should just carry on with them.

In your opinions, which should he pay off?

All I am concerned about is that if he pays the credit card, HSBC said previously that if he did, they'd give him the card facility back as he wasn't in arrears with them, (I was making the payments as the business he was working for just didn't open after Christmas 2005 and the bosses just folded the company) I don't want him to be given his card back!

I have said to him it is doubtful that now he is in an arrangement they would give him his card back and I am concerned that if he is ever in a position to get credit again, he'll be in this mess again.

Any advice please xx
£2 Coin Savers Club (Christmas)- £86
£1 Jar (Christmas)- £29
Christmas Vouchers Saved: £145

Comments

  • chevalier
    chevalier Posts: 7,937 Forumite
    Part of the Furniture Combo Breaker
    I would suggest that you save this as your 'boiler blowing up or expensive bit going on the car fund'. That way if something did happen you would not have to get more credit to pay for it.

    Also if one of you lost your job you would have a bolster to tide you over until you found something else
    chev
    I want a job that is less than an hour driving away from my house! Are you listening universe?
  • Jase
    Jase Posts: 12 Forumite
    sounds wierd but for £2k you can hopefully settle the card AND the OD. It can be done I have done it myself. Gives you the pschyological edge knowing that 3 debts are reduced to 1 and there is light at the end of the tunnel. Paypaln said the same to me - carry on, blah blah blah. Take out 2 and leave one rather than making one off payments to all three and not settling.

    Send a statement of account to HSBC explaining you can possibly get help off family and friends and offer a £900 each as full and final on the card and OD. They will probably barter you up to £1000 which you can cope with. Stress that in the card offer that it is not reissued to avoid temptation.

    I got Abbey down from £2k overdraft to settle for £1k and Barclaycard offered me 50% settlement. It can be done - nowadays with so much bad debt banks want to take what they can and run. You could for example leave the country the next week and they will have lost everything!!! They'll take it - good luck and keep us posted how you get on.
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