I need some help...

Ekim

Hi Guys,

I really need some financial help. I was paid on Friday, and looking at my account today I have already hit the overdraft limit!

Here's my situation. Over the past few months I have found myself slowly drifting in to and over my overdraft limit before the month is up. This has taken an effect where by my wage now is clearing the amount I'm going over and I'm going back to where I was before and ending up having to go back in again.

This came to a head last month and after two weeks I couldn't get any more money. Meaning I had to live off of as little money as possible, mostly by only eating one meal a day.

Looking at my statement last month the bank charged me £123 and next month they are planning on taking a further £57 for overdraft fees etc. I've spoken to them but the girl on the phone mentioned something about a court case and said she couldn't refund me but gave me an email address of customer relations who may be able to help me.

I have around about £8700 I built up on a credit card with HSBC a few years ago and I am slowly paying off - I have literally just come off of a default payment scheme and I am now paying just over the minimum amount each month.

In terms of my money coming in my take home wage after all deductions is:

£1030

My Outgoings are:

Rent £300
Credit Card £220
Council Tax £60
Electricity £25
Internet £8
Phone £3
Mobile £20
Contact Lenses £20

I was over my overdraft limit by £277 after charges last month.

After I had done a little christmas shopping this weekend and bought some food and essentials I already find myself in a pretty bad situation for the coming month.

I don't know what to do. I am going to write to HSBC to see if they can remove the charges, but I doubt they will. I've considered bankruptcy, but for what is in reality not a huge amount seems like overkill. I have before been offered a managed loan from HSBC, but from what I have read that doesn't sound like a good idea? My credit rating is shot to pieces.

Any ideas from you guys would really help.

Thanks

HBFS

Hi and welcome to DFW!

With your SOA, could you post what you spend on things like food, newspapers, cigarettes etc etc? This will give us a clearer idea of where we can help you!

CRANKY40

Mine is a really naughty bad idea....but I did it and it worked. I had an account with Natwest and like you, every month, the overdraft was there and used very quickly.

I opened an account with another bank, changed my wages over to get paid into that one, so I was starting with a clean slate, and made a payment arrangement with the Natwest (well they didn't have any option when they realised my wages weren't going in there). They even froze the interest and wrote off the last £30 when I lost interest in paying it.

I am going to stand in the naughty corner now for being such a totally bad example to everyone else.

Ekim

Don't tend to spend any money on Newspapers, and I don't smoke.

In terms of food. I generally buy my lunch in everyday while at work (Normally around £2.50 a day 5 days a week). In the evenings I tend not to eat much and I rarely do a big shop. At most I probably spend around £30 a month on food outside of lunch.

Being honest I do have a habit, that I am trying to kick, of playing on fruit machines whilst I am out with friends. In the past that may have account for around £20 to £30 of money spent in a month. Apart from that I can think of any 'extras' I spend my money on.

Scarlett.1974

CRANKY40 wrote: »

Mine is a really naughty bad idea....but I did it and it worked. I had an account with Natwest and like you, every month, the overdraft was there and used very quickly.

I opened an account with another bank, changed my wages over to get paid into that one, so I was starting with a clean slate, and made a payment arrangement with the Natwest (well they didn't have any option when they realised my wages weren't going in there). They even froze the interest and wrote off the last £30 when I lost interest in paying it.

I am going to stand in the naughty corner now for being such a totally bad example to everyone else.

<joins Cranky in the naughty corner> I did this too

really-trying-honest

Hi Ekim,
am quite a newbie myself so not really clued up, but as HBFS says you need to make sure you get everything down on your SOA, money for haircuts, hobbies anything that you spend on should be added-ooo and alcohol (am personally not being as good as HBFS:o ....ummm not at all..)

robotgirl_2

Hi Ekim and welcome

I've been in the same position going constantly over my OD limit and having all my money eaten up with charges. The first time, my bank offered me a loan in exchange for me returning my switch card (I'd been writing cheques and making switch payments I didn;t have money in my account for).

This actually worked really well for me. Not having a switch card meant I was forced to pay for everything with cash and stop buying things when it made me run out, it really helped me budget. It might help you out too?
Edited to add: You don' necessarily have to apply for a loan, but if a switch or cheque guarantee card is the problem, getting rid of it can be a good place to start.

I would also second the suggestion of a second account - paying money into your overdraft account feels different somehow more productive than just "not spending" £50 a month trying to clear it, and it removes the temptation to 'just' withdraw another £10 every so often

As others have said, and SOA will help us find more ways to save you money too, so post one as soon as you're able.

Welcome on board!

x

Ekim

Would something like that work? I suppose it is my best bet. If I can get my account down to the £1500 limit before the end of the month, and then just get paid in to a new account.

Aren't HSBC likely get a little bit angry though? And am I likely to get another account with such a rubbish credit history?

CRANKY40

Try and get another account first and see what happens, just a basic one. They're a bank, they don't get angry - they're not living in your house after all, they're just trying to make money from you. Believe me, they will see accounts in a worse state than yours on a day to day basis.

Ekim

I'll try popping in Nat West tomorrow - unless people can suggest a better bank?

In terms of getting these charges refunded from HSBC. Is it worth sending an email or am I likely to get fobbed off with the excuse of the court case?

*EDIT*

Actually... I think I still have an account with Abby National from when I was about 10. I think its still open and has a couple of quid in it. If I have a chat with them tomorrow and see if I still have the account that'd probably be easier!

Numpty_Monkey

:hello: just a quick hello , like what the others have said post your soa (check the newbie thread sticky thing at top of page)

have you thaught abut doing a spending diary? I've nearly finshed my first month and it is scary :eek: to see were your money goes, but with the wonderfull people on here, they can and will help:A :T