Gripping the club too tightly creates tension in the arms and shoulders which may end up in taking the club away too much round the body. This makes it harder to return the club to the correct position through impact to hit the ball straight.
At roughly hip height, the natural and relaxed hand action sets the club correctly into the backswing, with the sensation that the thumbs are pointing more towards the sky than around the body. This creates an approximate 45° with the club shaft (looking from down the target line) in the backswing.
Releasing tension will allow the ball to be taken back on a better plane. Grip the club lightly and more favourably in the fingers rather than in the palms of your hand, enabling you to feel the weight of the clubhead. This allows you to let the momentum of the clubhead let the hands set in the ideal position eradicating the problem of where to break the wrists. The correct hand action helps to create correct leverage in the swing creating power, distance and a solid contact.
To ensure the club is taken away correctly, check the shaft falls parallel with the line of your feet halfway into the backswing.