hsbc has just called me, i need some advise

redballoon_2

I havnt been keepin up with my credit card repayments, this month i have paid £57 less what i should have, and tonight they have called up to say when i can pay (the lady was actually really nice about it!!)


anyhoo, shes going to take a standing order for the £57 on friday when i get paid. She talked about my financial situation (hubbys work is up and down) and she was very understanding. told her i am in a process of getting a homeonwer loan from hsbc to pay back the vast majority of the credit cards (will be paying £70 a month for the loan instead of £300 on credit cards)

this will help in the mean time as i will just be able to afford the bills on just my wage. then when hubby is working again, we will be able to save some money and overpay on loan and mortgage (which we can do)

Shes also given me a number to call if i can not meet the repayments and talked about a fixed repayment which would be lower and she's had to cancel my credit card. (which i dont use anyway)

The thing is, should i wait until the loan is sorted and just pay the credit card off, or phone the number and get them to fix the repayment and not take the loan out and hope hubby gets work within the next week????

i'm fearing that my credit score is going to be terrible after this....

hypno06

Hi there, if you have not been keepin up with your card repayments, then your credit score will be affected anyway.

how about having a chat with CCCS or something similar - it doesn't mean that you have to go on a DMP or anything, it just gives you someone impartial who knows what they are talking about. I have spoken to them and payplan on a number of occasions and always found a very helpful person on the end of a phone, who can keep things in perspective at times when I seem to be going round in never ending circles.

I am sure you will make the right decision, whatever that is.

Good luck x

redballoon_2

if i go on to the dmp, will that mean that i wont be able to overpay?

hypno06

I am not on a DMP so don't know the technicalities, but plenty of people on here do - there is a fab thread for mutual support for those on DMPs, you could pop any number of DMP questions on there and they will be more than happy to help.

The thread is never far from the first page - sorry, I am no good at posting links!!

tigerfeet2006

Here's a link to the DMP thread

http://forums.moneysavingexpert.com/showthread.html?t=454457

and if you look at my signature you will get the details of the debt charities you can speak to.

Crown

Hi RB, If you seek advice from the CCCS or one of the Debt Charities you are not obliged to take out he DMP through them if you do not think it is suitable. I currently manage my own DMP and pay my creditors token payments. I prefer doing this way as any extra money I earn from part time work can be used to make overpayments to one without me breaking any official agreements.

Also I am not sure how far you are with the home loan you are arranging your home loan but please seriously give it some thought as from experience I have regretted turning unsecured credit card debt into secured as it nearly cost me my home. I seriously wish I had contacted the CCCS and found out the real deal before I did this when the banks were breathing down my neck.

Consolidation works only for a small percentage of people as you need to change your spending habits as well as clearing debts.

Good luck