Overdraft repayment plan

Paymeoffplease

Hi,
Several years ago I entered into a repayment agreement with HSBC to pay off my overdraft with them, total amount approx £3500 at the time, of which only £2000 was the agreed overdraft, they kept allowing me (and I was stupid enough to not realise for a while) to withdraw cash even when I was maxed out on my overdraft, it got daft and eventually I had to move banks, I had asked them on several occasions to not allow me to go over my limit but they didn’t change anything, I agreed a payment plan of a set amount per month (£30 initially, now £40) which meant I wouldnt have cleared my debt for approx 19 yrs when agreed, I am still paying this each month. Do I still need to pay this even after 7 yrs have passed?
Seems mad that this could affect me getting a mortgage for many more years.

System

Yes you need to continue to pay it until it is paid off in full. If you want to get a mortgage in the future you need to pay off the debt quicker. There is nothing stopping you from paying more other than your own refusal to put yourself out for a while and god forbid, cut back on some of your wasteful spending. A mere £3 per day, the price of a Costa Coffee, would probably see the remaining balance cleared off in a couple of years. If you smoke and stop smoking you'd save the thick end of the £3500 total start amount in just over a year.

What is mad is someone taking 19 years to repay £3500. That isn't even beginning to try to seriously address your debt and shows absolutely no commitment on your side to sort your own mess out.

Kentish_Dave

Paymeoffplease wrote: »

Hi,
Several years ago I entered into a repayment agreement with HSBC to pay off my overdraft with them, total amount approx £3500 at the time, of which only £2000 was the agreed overdraft, they kept allowing me (and I was stupid enough to not realise for a while) to withdraw cash even when I was maxed out on my overdraft, it got daft and eventually I had to move banks, I had asked them on several occasions to not allow me to go over my limit but they didn’t change anything, I agreed a payment plan of a set amount per month (£30 initially, now £40) which meant I wouldnt have cleared my debt for approx 19 yrs when agreed, I am still paying this each month. Do I still need to pay this even after 7 yrs have passed?
Seems mad that this could affect me getting a mortgage for many more years.

Yes, of course you need to pay it, and it’s frankly amazing that you could blame the bank for your lack of self control in keeping spending when that month’s budget was gone.

Why would you not need to pay it back, and do you not realise why this attitude to money means that banks are being very sensible in at least thinking twice before lending you more money?

BoGoF

Paymeoffplease wrote: »

Seems mad that this could affect me getting a mortgage for many more years.

The only thing mad is that you are only payinh £40 a month to clear it. That and the fact you ask if you need to pay it.

sourcrates

Paymeoffplease wrote: »

Do I still need to pay this even after 7 yrs have passed?
Seems mad that this could affect me getting a mortgage for many more years.

Hi,


This is rather a nieve attitude on your part, do you have a specific reason why you would think your liability was in question ?


I assume this is showing as a default on your credit file, what is the date of the default ?
Whatever it is, six years from that date, the default will drop off your credit file, no matter what the status of the account is, so nothing on your file effects you forever.

Clive_Woody

Paymeoffplease wrote: »

Hi,
Several years ago I entered into a repayment agreement with HSBC to pay off my overdraft with them, total amount approx £3500 at the time, of which only £2000 was the agreed overdraft, they kept allowing me (and I was stupid enough to not realise for a while) to withdraw cash even when I was maxed out on my overdraft, it got daft and eventually I had to move banks, I had asked them on several occasions to not allow me to go over my limit but they didn’t change anything, I agreed a payment plan of a set amount per month (£30 initially, now £40) which meant I wouldnt have cleared my debt for approx 19 yrs when agreed, I am still paying this each month. Do I still need to pay this even after 7 yrs have passed?
Seems mad that this could affect me getting a mortgage for many more years.

Use the money you would pay on the mortgage to repay this debt first. Increase your monthly repayment and it should be gone in no time.

diggingdude

how much do you still owe? divide that by 12 and pay it off in a year