HSBC managed loan nightmare!

jpca

Hello
I am new to this and wondered if anyone could give any advice. I have a small business loan, personal loan and credit card with HSBC. I also had another loan and credit card with other creditors. All was well until my small business failed and I am left with not enough income to cover my current monthly payments. I owe HSBC £35,000 and they have offered me a managed loan. My current payments to HSBC are £400 for pers loan and £420 for business loan plus £180 to ccard (although only minimum payment) so total montly payment (before running into problems) was £1100. If I had managed to keep up these payments, my personal loan would be finished in under 2 years and my business loan in 3. Instead, HSBC have now offered me a managed loan, at a much higher interest rate (nearly 19%) and I will have to pay £650 per month for the next 12 years!
I have the paperwork here in front of me and am despairing. Surely this can't be right? I am thinking of going bankrupt but am so worried as supposed to be emigrating to Australia with my whole extended family early next year and think bankruptcy will mean I won't be able to go as planned. Any help or advice greatly appreciated.

Many thanks.

GeorgeUK

Managed loans do not have a good reputation around here.
Have you missed any payments or got defaults/ccj's?

I'll try to find a bit more details on managed loans, but do you now have an income?

jpca

hi yes I have one default (from egg) - they told me they couldn't enter into an agreement with me until I defaulted - only just received the default notice so have more than 20 days to remedy if I find a better solution.
No CCJ's and I do have an income, just not enough to completely cover everything.

GeorgeUK

Before signing this agreement (and before looking elsewhere) - i would advise contacting one of the free debt charities as to what your possible options are. Managed loans are notorious for having larger than usual interest rates (approx 9.9% higher than normal) and are not designed to be in your best interest - they are for the bank to get as much money from you as possible.

Is any of this debt secured against your home or is it all unsecured?

Not sure about the effect your credit record has on emigrating but i'll try to look into that tonight.

(Taken from Fermi's signature)

Professional, free and impartial advice on debt problems can be obtained from several charitable and 'not for profit' organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart. You can contact:

Your local CAB Office and ask to speak to a 'money advisor'
The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
National Debtline - Tel: 0808 808 4000
Payplan - Tel: 0800 917 7823

jpca

thanks - i'll give them a call. really appreciate your advice.

GeorgeUK

It might be worthwhile putting up a statement of Affairs so we can see exactly how much you owe. I would have preferred to try getting some 0% creditcards before anything else if you could nearly cover everything but that default may cause a problem. Only one way to find out i suppose.
http://www.makesenseofcards.com/soacalc.html

Note: You can usually have about 3 credit checks in a 6 month period before your credit score is affected. Do not apply for alot of credit in a short space of time.

I would advise contacting CCCS or payplan in the first instance though

villageidiot_2

hi,
I'm BR and will be emigrating to Oz with my Australian wife at some point,so i've checked on various sites wether bankruptcy would stop me getting a visa.Good news on two fronts.Firstly,there is no problem with bankrupts getting a visa,secondly,your British credit rating doesn't count against you when you get there,so getting a morgage,opening a bank account will just depend on your Aussie status.
Good luck

dfw844

I think Martin should set up an MSE dating service. At least then you'd be sure to meet someone who isn't going to expect you to blow a fortune on dates!

jpca

Hi, thanks. That is very encouraging. I had been told that it would may have an adverse effect when I applied for my visa. So difficult to try and keep everything afloat with house prices falling so rapidly and debts mounting!

jpca

Just to give you more of a breakdown, I owe £35,000 to HSBC, £10,500 to Egg (no revised payment plan in place yet - paying £245/month for 5 yrs) and £8000 to Barclaycard(now managed at £100 per month with interest frozen).