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Newbie- Overdraft help!
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JohnnyLynx
Posts: 2 Newbie
Hi guys
I need advice/help regarding my overdraft. I’m a newbie to this forum stuff, so I hope I’m in the right place.
I’m currently have a HSBC Advance account with an overdraft limit of £4400. I’m currently stuck in the overdraft upto £3800. I got there by being reckless with my money and having holidays I couldn’t really afford.
Anyhow I need to clear the £3800 overdraft before the new rules come into play in March where I will be charged 40% interest- which would cause me to sink further into debt and possibly push me over the edge mentally.
I’ve tried applying for a loan with my bank and they said NO, which ain’t helpful. I’ve looked at my chances of getting a money transfer credit card...again NO.
I’ve followed Martin’s tip to reduce my outgoings and save for a while and I cannot cut back anymore. I have no assets as I’m a private renting tenant and has no car. I genuinely don’t know what to do?! I’m suffering with depression and the new overdraft rules is causing me so much stress and worry I can’t see the light at the end of the tunnel. Someone please help me
I need advice/help regarding my overdraft. I’m a newbie to this forum stuff, so I hope I’m in the right place.
I’m currently have a HSBC Advance account with an overdraft limit of £4400. I’m currently stuck in the overdraft upto £3800. I got there by being reckless with my money and having holidays I couldn’t really afford.
Anyhow I need to clear the £3800 overdraft before the new rules come into play in March where I will be charged 40% interest- which would cause me to sink further into debt and possibly push me over the edge mentally.
I’ve tried applying for a loan with my bank and they said NO, which ain’t helpful. I’ve looked at my chances of getting a money transfer credit card...again NO.
I’ve followed Martin’s tip to reduce my outgoings and save for a while and I cannot cut back anymore. I have no assets as I’m a private renting tenant and has no car. I genuinely don’t know what to do?! I’m suffering with depression and the new overdraft rules is causing me so much stress and worry I can’t see the light at the end of the tunnel. Someone please help me
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Comments
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I am having similar worries. I had a budget to clear all debt, including £1500 overdraft, by November. Now, I need to look at it again, and prioritise the OD. Only just heard about the change in interest rates (definitely watching Martin’s show on Monday!), so will read more today and check with my bank (HSBC). Hope you can get some useful advice on how to pay off your OD.DEBT FREE IN SEPTEMBER 2022, after 33 years of debt!
Now I concentrate on building my £6000 Emergency Fund
Read my blog about living with chronic pain/fatigue and earning money onlinebalancinglifewithchronicpain.com0 -
JohnnyLynx wrote: »I’ve tried applying for a loan with my bank and they said NO, which ain’t helpful. I’ve looked at my chances of getting a money transfer credit card...again NO.=
You're not going to get cheap borrowing with a maxed out OD.
Cutting costs, earning more or selling what you already have is the way forward.
Post up a SOA and people will help.0 -
Hi Johnny. Sorry to hear that you are struggling.
Link to the SOA calculator below. Please format for MSE.
https://www.lemonfool.co.uk/financecalculators/soa.php
Have you contacted any of the debt charities? https://www.nationaldebtline.org/ If you are not managing to make a dint in the overdraft it may be that you need to speak to HSBC to say you are struggling but I am not an expert on the best way forward with this.
Do you have any means of bringing in any additional income i.e. a part time job etc?"Everything comes to him who hustles while he waits" Thomas Edison
Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:0 -
Hi - just checking, I'm sure I read that the OD charges would be capped though … I need to doublecheck but I believe is capped at £20.00/mth ...0
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Hi guys,
I will post my SOA in the next few days. I’m with HSBC and they haven’t been helpful at all I work full time and some more to the point I’m doing 70 hours a week in some cases. I can’t do many more as I’m restricted with the amount of drivers hours I can do in my job.
I have a partner who has a few debt problems so they can’t realistically help me neither.0 -
Anyone struggling with overdraft charges, who has already cut there budget to the bone, who cannot earn anymore, and have exhausted all other options, you do have the choice to stop using the account, let it default, and treat it as any other non priority debt to be serviced, at a rate you can afford.
You will need to open a new bank account, preferably a basic account without any borrowing facility, and your credit file will be affected by these actions, but at least it will solve your problems.
This is a last ditch option, when you have no other choice.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi - just checking, I'm sure I read that the OD charges would be capped though … I need to doublecheck but I believe is capped at £20.00/mth ...
Only unarranged overdraft charges capped at £20/pcm, arranged overdraft charges have no limit.# 365 Day Penny Challenge 2021 £111.84/£667.95, # Virtual Sealed Pot 14 £7.56/£200, # Saving for Xmas 2021 £1 a day: £82/£365, # 1 debt vs 100 days £1,240/£1,240, 1 debt vs 100 days £1,000/£1,000,1 debt vs 100 days £0/£3,540,#80 Pay all debt by Xmas 2021: £2,555/£11,295.000 -
sourcrates wrote: »You will need to open a new bank account, preferably a basic account without any borrowing facility, and your credit file will be affected by these actions, but at least it will solve your problems.
... with a bank other than HSBC, and not in any way connected to them.
That may be obvious to readers but I've learned in my job to state the obvious, as I've had clients open a new account with the existing bank, thinking that will help.0 -
Its not 40% though each month?£5000 left to pay on credit cards, down from 40k!!0
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OMG - whats the logic in that?? They are basically making the OD an unaffordable budgeting tool ( or cheap loan ) .
How scary...0
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