Okay, in debt, sick of being in debt, all advice greatly appreciated

kolin_2

hello everyone,

straight down to business, I hate HSBC, i'm sick of them charging me, they tell me i've gone over my overdraft limit, when in fact it is usually their charges that put me there.

To be honest i'm not sure where to start, so i think i'll start by listing my current debts.

Graduate HSBC Current Account.
1)Overdraft, Limit £1500, debit interest is usually around £15
2)Current balance £1549DR
This current account has 'acquired' £319 in charges since December 2007. this includes a £100 'admin' fee to increase my overdraft temporarily by £100 so a direct debit could go out.:T caused by the previous charges.


HSBC Credit Card
1)Current APR 24.9% :beer:
2)Current Balance : £5609 (limit £5500)
3)Location of card : shredded months ago.
4)Interest on Purchases : £40.11
5)Interest on Cash : £75.01
6)Have paid regular payments of £160/month.

I am aware that I need to get a 0% card, but I am scared I cant.


Outstanding Loans
HSBC Graduate Loan
1)Monthly Repayments : £367
2)Remaining Balance : £16,552

Northern Rock Loan
1)Monthly Repayments : £152
2)Remaining Balance : Around £6800
3)This also includes a payment protection Loan.

Reasons for Loans, starting up a business with a partner, that in its second year is break even.

I have had to effectively for the last 2 to 3 years work two full time jobs whilst the partner concentrated on getting the business started.

My debt problem has been with me since university some 9 years ago, It causes me great anquish and stress to even think about money, so much so that i have had numerous trips to hospitals and doctors suffering from depression and stress.

My Monthly outgoings are
1)HSBC Loan : £367
2)Northern Rock Loan : £152
3)Visa Card Payment : £160
4)Phone Bill : £50
5)Debit Interest : £15
6)Car Tax : £10
7)Car Insurance : £47.31
8)Petrol : £200 (have to regularly commute 110 miles to business)
9)MOT : £3.50
10)Car Service : £12

In total : £967

Income : Usually around £1160 after tax.

Other expenditure? Virtually nil.


I really have no idea where to start in managing all these. er help?

Merlot

Hi and welcome to the board, do you not live anywhere, I can't see it in your SOA?

Merlot

My advice to you before I rush out, is claim the money back from the payment protection, they are usually not worth the paper they are written on, take a look at Martins advice on it, go to the top of the screen and its the pinkish tab, reclaim £1000,s, take a look in there for more help on this.

Merlot.x.

CLAPTON

perhaps you need to review the business' prospects. Your income is just too low to support these debts and to live too. When do you expect the business to make a realistic amount of money? Maybe, you need to set a timescale for the business to shape up or to close it down and look for more productive employment.

kolin_2

Merlot wrote: »

My advice to you before I rush out, is claim the money back from the payment protection, they are usually not worth the paper they are written on, take a look at Martins advice on it, go to the top of the screen and its the pinkish tab, reclaim £1000,s, take a look in there for more help on this.

Merlot.x.

Regarding the PPI, Am I correct in assuming I can reclaim if i was in fulltime employment with a company at the time the loan was taken out, and I have since become self employed? (i became self employed at the end of february, the loan was taken out in March 07)

kolin_2

CLAPTON wrote: »

perhaps you need to review the business' prospects. Your income is just too low to support these debts and to live too. When do you expect the business to make a realistic amount of money? Maybe, you need to set a timescale for the business to shape up or to close it down and look for more productive employment.

The business supports me and my business partner, It is expected to make profit in its third year as it is growing rapidly.

As no one offered to help our business we have had to do all the work ourselves, I have had to work two full time jobs (one being our business, the other being a standard 9-5) to cover both people, whilst my business partner (who has done a magnificent job) got the business up and running. simply because I have more earning potential.

I no longer have to subsidise, and we both take a small portion of the business income to meet both our minimum payments each month.

It is all getting a bit too much for me though now, i'm 28 and I shouldnt really still be stressing and worrying about my situation at this age. I just want to get debt free.

I would also like to get rid of HSBC, and move to another bank.

kolin_2

Can anyone offer me anymore advice here?

For what its worth, i currently live with my parents so Rent and Council Tax are taken care of.

I have sent off today, a request for charges to be re-imburresed and my PPI to be returned to me from my northern rock loan.

LilacPixie

Why don'tyouapply for another current account and switch from HSBC??Surely even switching to a more basic account elsewhere for your DD's and earnings to be taken from would then allow you to stop the HSBC charges and attack that Overdraft.

Do your parents also supply your food??

Singsalsing

I hate HSBC too!

After reclaiming my bank charges they turned into the bank from hell. Although they didn't close my account, they started bombarding me with calls at work sometimes 3 or 4 times a day. I almost lost my job because of them. They denied conversations I had on the phone. They told me they were cancelling all my direct debits but then didn't and I ended up over £400 out of pocket. Their charging is totally erratic ranging from £25 - £125 and their call centre staff are totally useless!
I am in a massive dispute with them still after 6 months!

Open a new bank account and claim back all your charges urgently. Never use HSBC again for anything.

Tinkabell25

Hi Kolin,I would go to another bank and open their most basic account so you can't have an overdraft or anything and use that as you're main account. Put a freeze on your hsbc accts and pay them off bit by bit so you can get away from them. Meet with a rival bank and see if they'll help you. See if there's anyway to consolidate all your loans and credit cards into one so you can find a way to get the monthly payments lowered or at least not have loads of different payments going out on different dates which is a nightmare to keep track of.

hbl_2

I've used HSBC for 10 years (since I started University) and I had a few problems with overdraft fees back in about 2000, but I got them all refunded. When they charged me I went into a branch, when they refused a second time I went to a different branch to get it refunded. When they refused to refund third time I called them up. When it happened a fourth time I call my branch. And when it happened a fifth time, I wrote to my manager telling them that it was THEIR fault and they should extend my overdraft (one payment kept taking me over the limit for about 3 days at a time). They conceded on that point too and gave me an extra £200 interest free OD.

Since then I've not had a problem, and I pay off the last £500 of my (interest free) overdraft next tuesday before the interest starts. The limit's £2000, so will get them to reduce it to £500 rather than 0 so I don't get charged should I trip over the limit.

HSBC may not be the best banking service, but it does have kick !!! online banking, and I'd rather stick with them than risk a replacement bank being crummy in comparison (I've been using online for 10 years now without incident).

Good luck!