Going under quickly! Where to start?

lynzpower

QUESTION.... Do we continue paying off the overdraft and HUGE fee's to HSBC and struggling desperately (this option will take about 3 months until we are within our agreed O/D), or do we transfer our bills to another account and just continue transferring a little each month to pay HSBC? I'm scared they'll demand payment in full for the O/D and C/C's.

Do the second option. You need to view this account as another debt. and as such that debt needs to be dealt with "in the right order" so if its only 9.00% interest, ( for example) then other debts will be more pressing.

Fiddle about with the snowball calculator, and see how the figures look.

MrsTinks

Also if they DO demand full payment etc etc then the answer is simple - they cannot have what you have not got. You have what is called priority debts and non-priority debts. Priority debts are rent, utilities, council tax and food - ok they're not debts as such but they are a priority. Then there are non-priority - that is cataloug, CCs, over drafts and other debts.

I thinks what is needed is to bring ALL your debts below their limits. One way or another. DO you think by having your OHs overtime pid out instead of taken in leiu that this will get you below the limit soon enough? This is really the ultimate target number 1. Once you're below the maximum limits then we can start snowballing and avoiding those charges so we can get you on top of things

weezypoos

OK, things are starting to become a little clearer now.

1. Contact companies today to transfer all DD'd to my other bank account!
2. C/C's are now in the bin!
3. Hubby is starting his overtime this week so we should see the results in September.
4. Use excess money from not paying off HSBC £150 to pay off cards that are over their limit.

HSBC are going to be really annoyed!

By the time HSBC have taken the charges off us our account will stand at around £2000 O/D. Our agreed limit is £1500. So I'm guessing that if my wages are no longer going into that account then £150 will continue to be added to HSBC so we'll end up in even more debt!