Help, need advice :(

StinkyPinky_2

My husband and I have a OD with HSBC.
The OD is £1000 but we are in arrears by £400, so £1400.
Every month they are charging us £125 OD fees and sometimes more.

My husband is out of work at the moment and I claim benefits and stay home looking after my disabled son.

I did write to HSBC to explain our circumstances and also spoke to them yesterday to see if it was ok to pay £40 a month until the OD was back in credit and they said yes.
But that isn't going to help as the charges are more than our payments.

They did suggest about taking out a Managed loan with them but I have done a search on the internet and they don't look very good.

Would it be better to pop into our local branch and talk to them and see if they could help in a different way or should we take the managed loan?

Thanks.
SP.

mummytofour

I had a managed loan with nat west some yeras go, it was ok and saved on the bank charges. But by the sounds of it you dont have the money to pay for a loan. It might be worth calling the CCCS for advise on this. Plus as a matter of urgency open another banck account and have all your money paid in there. Oh and IIRC banks can not take benefits to pay for bank charges! But somebody will be along with more info on that hopefully!

tallyhoh

I agree with that, open another bank account. They cannot take your benefits.

CCCS_Sarah

Hi Sp,

As other people have mentioned, you need to look at changing your bank account to a bank where you have no debts. This will break the cycle of charges so your money is not been swallowed up every month.

Have you got a financial statement? If not put one together this will need to detail ALL your income and expenditure. The money you have left over this is the amount to offer HSBC.

If you have more than one debt – CCCS have a free online debt advice facility called debt remedy where you can be provided with advice and a long term solution to your situation. This link will take you directly to Debt Remedy.

The most important thing here is not to be pressured into paying more than you can afford. Once you have put together your financial Statement post it on here and people will be along to offer their support and see if they can help you cut back

Let me know how you get on

Sarah