HSBC Managed Loan, 0% APR

303

Margin_Walker wrote: »

I'm sorry but that's complete rubbish and I would love to see a link confirming where interest has been added to a Managed loan at drawdown let alone one that has been offered at 0%. The interest you would pay on a personal loan in future which would have been front loaded when that loan completed is taken off the balance of any Managed Loan.

As has been mentioned elsewhere on this thread the 'catch' with the loan that has been offered is that it can revert to a higher rate at any time in the future after a review of your income and expenditure. While this is not being done as a matter of policy at the moment it is a possibility and something you should be aware of. However for the time being interest would effectively be frozen on your outstanding debt if you took the loan.

Hi there,

Thanks for the information - I was starting to get the impression that people seemed to be going for the "avoid like the plague" stance without any real foundation or evidence (other then anecdotal). Realistically, I think consolidating our borrowing at a rate of 0%, even if only temporarily, is a pretty decent option right now - not that we have too many - and of course this way, HSBC stand to get the full amount of borrowing repaid, which they wouldn't if we went down the IVA/Bankruptcy route.

DevonGirl

Margin-Walker may well be right in what he says, being an HSBC worker, but once you're signed up to the M/L you can kiss goodbye to being in control of your finances... As for 0% - I give it 6 months maximum!!

Sorry for the cynicism so early in the morning - it's not directed at you, 303 , but I've seen how HSBC act when you 'play their rules' (I was a loyal customer for 15 years) and when you don't and they do turn nasty pretty quickly.

Please also see answers on DMP - HSBC Nightmare thread!

303

@DevonGirl

I have to say, based on the way HSBC have treated us in the last few months (we've been trying our damned hardest to keep on top of our repayments, to the point where we haven't had enough money for food, but they keep hammering us with charges), I would be very surprised if they had any interest at all in trying to help us. But the thing that's making this offer so tempting, despite what it may have in store for us further down the line, is that we spoke to CCCS about an IVA last week, and it turns out we don't have enough surplus income for it to be an option. They also calculated that in our current situation it would take us 26 years to repay our debts on a DMP! So we've spent the last few days considering the reality of Bankrupcty, and on that basis, a Managed Loan does seem like a better alternative.

DevonGirl

I can see where you're coming from. 26 years is pretty scary :eek:, even if that figure would come down over time as you pay off creditors. I'm currently at 8 years in DMP and that's bad enough.

I really do hope that things work out for you . I see you've posted on Ask a CCCS Counsellor.... - they're the experts, so it will be interesting to hear what they say. Don't forget you can always get a 2nd opinion from PayPal who sometimes give different advice from CCCS.

Anyway, good luck again.:beer:

303

DevonGirl wrote: »

Don't forget you can always get a 2nd opinion from PayPal who sometimes give different advice from CCCS.

Do you mean Payplan?? I was thinking of phoning National Debtline as well today - can't hurt to get too much advice - unless it's all conflicting

Oh, and thanks for all your replies!

DevonGirl

Ooops, yes I meant PayPlan, not PayPal - haven't had my morning coffee yet!

foolishqueen

I've just recieved the exact same letter from HSBC - 0% managed loan, for the remaining captial balance of my outstanding loan. I agree that in the agreement they do add the clause about changing the rate, but if I agree to this, and end up not being able to afford it for whatever reason in the future, they I'd just be back to offering them the pro-rata amount again. Obvioulsy it woul dbe back to square one, but would you really lose out?

So far, 4 of my creditors have accepted. I've had no nasty phonecalls, and it all seems to be going well!

What did you do in the end 303? I'll have to ask CCCS myself I guess

LilacPixie

Margin_Walker wrote: »

I'm sorry but that's complete rubbish and I would love to see a link confirming where interest has been added to a Managed loan at drawdown let alone one that has been offered at 0%. The interest you would pay on a personal loan in future which would have been front loaded when that loan completed is taken off the balance of any Managed Loan.

As has been mentioned elsewhere on this thread the 'catch' with the loan that has been offered is that it can revert to a higher rate at any time in the future after a review of your income and expenditure. While this is not being done as a matter of policy at the moment it is a possibility and something you should be aware of. However for the time being interest would effectively be frozen on your outstanding debt if you took the loan.

It is not 'complete rubbish' as you so succinctly put it. My own parents had a 4k loan with HSBC shortly after my dad retired the Perth branch contacted them as they had 'concerns' about their financial position and offered to roll their loan and overdraft into a 'managed loan' I personally attending a meeting in the Perth branch with my parents to see exactly what was going on (i thought they may be wanting the loan settled as my dad was retired so was ready to settle with my funds if needed).

The adviser there laid out all the information. Interest front loaded at the time of the loan was included. From memory they had borrowed 4k over 3 years with no PPI, payments were £140 per month with 22 payments remaining and the figure they wanted to 'manage loan' was £3081. I must stress HSBC instigated this not my parents it turns out because my dad retired from his full time job and started claiming his private pension that was paid into their A&L account so HSBC presumed they must be suffering financial hardship.

Eventually i/we persuaded the adviser that this was not needed nor required and the loan could be settled there and then if required. The adviser said there was no need and she felt the right decision had been made as in her experiance the interest rate on these managed loans always increase after 6 months. the highest she had saw was 17%

As I say I would not touch that with a barge pole and this is from personal experience.

saskia1

Ok - gonna put my twopence worth in..............

i also work for HSBC- am starting my own self adminstred dmp with other creditors (£40k) + i have £30k of hsbc debt & as staff thay WON'T offer me a 0% MLA ( i have asked!!) i will have to get it at 7% over base rate--

i am almost begging for a MLA - the reason i want it - you can pay lump sums into it ant any time - request a paying in book - even if you manged a £10 week - that will be quite a bit of the capital.

Manage Loans - yes they are more debt - but if your'e like me & want an affordable monthly repayment & with the option of paying in extra - i would say go for it.

HSBC review their base rate loans once a year (in my experiance) - the six month review thing will be just that - you'll probably get a phone call & then just say nothings changed & then they will leave the loan as is.

PM me if you want a more detailed chat - i have worked for them for over 15 years and can give you all the advice you need,

sas

10past6

saskia1 wrote: »

i also work for HSBC- PM me if you want a more detailed chat - i have worked for them for over 15 years and can give you all the advice you need

I don’t think it’s a good idea to offer a PM chat, it could be classed as “touting”

Regarding a HSBC ML, I doubt there's anything within a PM chat that can't be discussed on the forum.