Repayment plan refused because I earn too much

Richey_

I am sorry you feel that way. No post has been intended or meant to have been sarcastic or dismissive, My initial concern when you (poorly written) first post speaks of you and your wife earning £8k in a month yet arguing about such a small sum against large earnings. It never mentioned other debts and was not clear that it is sporadic earnings not a guaranteed income.

Pedrosica

Thanks just to clarify I wasn't actually referring to your posts but to others elsewhere in the forum who basically said it was all my fault and I deserved what I got.

Your advice is genuinely appreciated.

Pixie5740

Will you be setting up payment plans with all your other creditors or just HSBC? If it's the latter then it's not really fair to expect HSBC to be the only creditor to freeze the interest and accept a payment plan when you aren't treating the other creditors in the same way.

My advice would be to stop using the HSBC account. Open up a new basic current account elsewhere with a bank or building society you don't have any debts with and start having your money paid into it and move your direct debits and standing orders to the new account as well. If your joint account is with HSBC too then you will want to move it as well. HSBC can't take what they don't have. Then write to HSBC asking them to freeze the interest and offer a payment plan.

If you find that you are still struggling with debts whilst being self employed I recommend you contact Business Debtline (a debt charity) for advice.

Pedrosica

Thanks for the advice. It does make sense but the reason I don't have a plan in place with the other creditors is that they have called in their money yet.

And also moving accounts elsewhere won't stop me defaulting. I'm not really worried about them taking the money (if it's there I'll pay it myself). I'm worried about not having the money and then defaulting.

enthusiasticsaver

If both businesses are turning a corner and are profitable you need to put a proper budget in place and speak to HSBC and don't lie about your income. Tell them it is fluctuating as you are self employed and you want to pay it but you also have rent and other debts to pay. The problem is that it is unauthorised which is why they are coming down so hard on you. Have you any invoices outstanding for either of your businesses which are due to be paid? This is something you will need to grip on if you intend staying self employed. Alternatively one of you needs to get a job with a regular income to get you over this sticky patch until your businesses are bringing in a sustainable income.

Incidentally rent, council tax and utilities are the most important debts you should be paying.

Pedrosica

Thanks for replying.

That's actually exactly what we have done but they've refused.

I've made it very clear that the income is only a projection but they said they can do a plan on projections alone but state that it is guaranteed. I haven't lied but essentially I had to tell them these were my earnings because I really didn't lose out by doing so (I'd already told them in the same call that I couldn't guarantee them and that also meant I couldn't put a plan in place - I don't get a plan either way). They also told me I had to include benefits of nearly £800 even though I probably won't get them now due to my income rise as I receive them currently.

They have said that after other expenses I would have £1200 of spare income. However £800 is beneffits that I won't receive leaving £400. It would only take one client to pay late (as happens) or pull out and that £400 would be entirely wiped out.

I'm really at my wits end!

robber2

Pedrosica wrote: »

Thanks that's the first non sarcastic/dismissive reply I've received. Much appreciated.

To be fair to other posters you stated in your first post that the debt owed was £220 and then go on to talk about monthly joint earnings of up to £8K. It hardly suprising that some of the responses you have had havn't been to your liking.

Perhaps you could indicate your appreciation of these posts as well whilst at the same time apologising for posting such deeply misleading information.

FWIW in your situation I would open a different bank account and ensure that ALL your income goes there. I cant see you finding any lender prepared to re finance the debt so cut down drastcially on your spending and throw everything you can at the debt and keep your fingers crossed that you can clear it before the bank defaults you. Be prepared for a rocky ride and some future credit issues though.

good luck

Rob

Pedrosica

Regardless people come on this forum for advice not be told they are taking the mick or to have it implied their issue is not really an issue. It's not helpful so I don't see the point in being grateful when someone says those things. Where people have tried to help I have been clear in my appreciation.

KeithP

Pedrosica wrote: »

Where people have tried to help I have been clear in my appreciation.

Have you?

You have not yet thanked one post.

photome

KeithP wrote: »

Have you?

You have not yet thanked one post.

To be fair he is a new poster so may not realise there is a thanks button, he has also thanked posters in his replies