Looking for some help on a sticky overdraft situation!

tankgrrl

Hi all,

The lovely people in the Banking forum said I may get some further advice by posting in this forum too and they also suggested completing an SOA which I will do asap but the following was my initial query...

I need some advice if possible on any solutions for moving overdraft debt elsewhere.

My bank have been in contact within the last month to say that they will be reducing my overdraft or even completely removing the facility as my earnings are no longer proving to them that I can 'manage' the overdraft. The overdraft is currently just under £2500 and I've been slowly reducing it, £50 at a time when I can. I've also always paid the interest on the overdraft.

I haven't got any savings to use to pay this off in a lump and I do also have a credit card which does have credit on it.

I've spoken to HSBC and they've given me just over 3 months to reduce this right down.

Does anyone have any suggestions? I've already tried to apply for the top 'Money Transfer' credit card on 0% but was declined.

Thanks in advance for any guidance.

sourcrates

Hi,

Only thing you can do if the banks not willing to allow you to repay over a longer period, is to stop using the account, let it go into default, then tackle it when it gets sold on, then treat it like any other debt.

In the meantime you will need to open a new bank account, preferably a basic account with no OD, they are available to anyone, as there is no borrowing allowed, and you are not credit checked.

This will also have the benefit of making you live within your means, only down side is it will be reported negatively on your credit file, but if that’s your only option, that’s your only option.

I would not recommend consolidating this debt, and you have already been declined for balance transfer, looks like your only option to me.

starting_again_in_the_sun

Only other option would be to ask your family to help you out if that's a possibility?

StepChange_Rachael

Hi

I just came across the post, hope you don’t mind me replying.

If you’re struggling with the payments and they’re going to close the account then it would be advisable to open a new basic bank account, i can see this has already been mentioned to you.

I’d also advise speaking with a free and impartial debt advisory service so you can find out what support and options are available to you to help you become debt free.

You can find out more about StepChange Debt Charity and the help we offer here.

Take care
Rachael

tankgrrl wrote: »

Hi all,

The lovely people in the Banking forum said I may get some further advice by posting in this forum too and they also suggested completing an SOA which I will do asap but the following was my initial query...

I need some advice if possible on any solutions for moving overdraft debt elsewhere.

My bank have been in contact within the last month to say that they will be reducing my overdraft or even completely removing the facility as my earnings are no longer proving to them that I can 'manage' the overdraft. The overdraft is currently just under £2500 and I've been slowly reducing it, £50 at a time when I can. I've also always paid the interest on the overdraft.

I haven't got any savings to use to pay this off in a lump and I do also have a credit card which does have credit on it.

I've spoken to HSBC and they've given me just over 3 months to reduce this right down.

Does anyone have any suggestions? I've already tried to apply for the top 'Money Transfer' credit card on 0% but was declined.

Thanks in advance for any guidance.