Practical steps to get you back on track
If mounting debts leave you struggling to keep on top of your finances, we can help you get back in control. Take a look at the practical steps below and discover simple and straightforward ways to reduce your spending, increase your income and review your financial commitments.
Reducing your spending
Before you look for ways to reduce your spending, you should always pay for essential items such as: your mortgage, rent, gas, electricity, water, council tax and insurance. If you don't make these payments it could lead to repossession, cutting off supplies or a court appearance.
Now look at your non-essential outgoings to see where you can make savings. This could include items such as: cigarettes, entertainment and clothing.
Increasing your income
Make sure you're claiming everything you're entitled to. This could include: family credit, housing benefit, income support, council tax benefit and benefits for people with disabilities. Trade unions and professional bodies often help members and students may get special support.
You could consider working additional hours or taking an alternative job or selling some assets to reduce your debts.
Checking your tax payments
If you're working, check your tax code to make sure you aren't paying too much tax. If you work part time, contact your local Tax Office to see if you are entitled to a rebate.
Reviewing your loans
If you're finding it difficult to make your loan repayments, you should contact your lender immediately. They should work with you to develop a payment plan you can afford.
If you have a mortgage
If you have a mortgage with HSBC, take a look at our guide to managing your mortgage repayments.
If you have an overdraft
If you have an overdraft with HSBC we can discuss whether it's the most affordable option for you. For example, an arranged overdraft may cost you less in fees than frequent unarranged overdraft requests. Alternatively you may find another form of borrowing is cheaper for you, such as a personal loan if you have a sizeable overdraft.
If you are considering using a HomeOwner loan to refinance existing debt please read our Debt Consolidation Fact Sheet (PDF).
If you have a credit card
If you have a HSBC Credit Card, stop using your card and continue paying at least the minimum payment. Because the interest rate on credit cards is generally higher than on other types of credit, you should aim to pay off your credit card balance as soon as possible.
If you have other loans
You should discuss with your lender what you can afford to pay and when. You may even be able to stop making payments for a few months and make up the difference later.