HSBC 0% Managed Loan Offer

dfw9162

Hi There, HSBC rang yesterday to offer us a 0% Managed Loan on our £13k debt.

They have told us that the intererst rate can be (but not definately) revised between 6 and 12 months, anywhere from 0 to 7.0% over BOE Base Rate.

They told us that as there was no interest on this loan, there would be no early repayment penalty and we could overpay at any time.

Has anyone else been offered this?
Should we take it?
Why won't HSBC confirm the offer in writting before we have to accept it?

We have to give them a quick response (of course !)

Thanks in advance.

Mike

LilacPixie

I personally wouldn't purely on the uncertainty of it. I don't know how long you expect it to clear 13k but what is BOE base rate is 8% your interest could be 7% over that at 15%. I personally would feel unconmfortable not knowing the terms for the full term of the agreement

The debt free board is litered with people having difficulties with 'managed loans'

dfw9162

Thanks LilacPixie. That's our concern - but 0% does seem like a way forward.

I'm going to speak to CCCS in the morning.