managed loan extortionate apr

kevsadie82

i got in trouble back in feb with my hsbc overdraft and credit card so they combined the two and made it a managed loan.well i got a 6 monthly statement yesterday-the opening amount was £3910 i pay £60 every month and its only gone down to £3773 this is gonna take me forever to clear at this rate but i have really awful credit is there anyone who can help me with this? i thought maybe the social fund or someone?? any suggestions greatly appreciated

Lokolo

Pay off more per month?

kevsadie82

i'm a single mum with 3 kids-thats easier said then done!

~Beanie~

They must have advised you of the term of the loan and the APR when you took it out. How long is it over?

kevsadie82

all he said was it would be finished in 2012,i dont think he did say about apr or anything but i cant prove it because i dont record my calls,im pretty damned sure he said that the final amount of the manage loan would cover all the interest so i didnt think i would pay any i thought the £60 would ome off the total every month-i had a managed loan a couple of years ago and im sure thats how it worked.
it would be stupid and not that i would do it but if i defaulted on paying this wouldnt they just get a credit company to chase me then i would only have to pay what i owe not the interest as well wouldnt i?

daveyjp

You state its an extortionate APR, but then say you don't know how much it is. £60 a month with a 4,000 debt will take years.

opinions4u

£4,000 at 19.9% would cost £105 a month to pay off over 5 years.

If you are paying £60 a month, that's £3,600 over 5 years. So there is no way the loan (with interest which should be in the low thousands over 5 years) is going to be cleared within the term suggested.

If you could dig out the loan agreement and tell us what it says about amount borrowed, term, protection insurance and APR that would help.

I don't think there's any hope at all of the Social Fund taking on your debts by the way.

kevsadie82

omg he said 2012 on the phone but i have just dug out my agreement and it 2017!! i know i should have read it before i signed but bloody hell! it says;
total charge for credit,comprisind-£2,642.70
total interest-£2,642.70
arrangement fee-£ 0.00
amount of loan £3,910.00

kevsadie82

i have just been lokking at a similar website to this and people seem to be claiming some interest on these managed loans back by telling the bank that its their fault the needed the managed loan because of all the bank charges they acrued-is this right? and how would i go about it?

moneysavingallday

What is the APR on it then?
And what exactly is a managed loan?

piglet39

opinions4u wrote: »

I don't think there's any hope at all of the Social Fund taking on your debts by the way.

Agreed - but have you got a credit union in your area. They are brilliant and quite often can help in situations like this.

HTH

Piglet