HSBC managed loan

jo6526_2

Can I ask a question, when you write to your crediors esp bank to come to an arrangment to pay your debt off (overdraft), do they still continue to add on high interest and charges? or does this get froze while you pay it off?

CCCS_Sarah

303 wrote: »

From memory (I spent that long examining the small print over and over, a lot of it is imprinted on my memory!), the total amount payable specified in the contract was the same figure that was drawn down (is that the correct term?) to our account, and the term specified was 10 years. We did the calculations and the monthly payments, as they stand, do add up to the total amount payable, when spread over 10 years. But I'll definitely be keeping tabs on things online (we have yet to make our first payment, so at the moment I can't see anything but the total balance) - still quite wary of what we've signed up to

My friend had a Managed Loan with HSBC, when she asked me to look at the account on internet banking you can see the monthly payment deducted from the balance and just before the next payment the interest is added back on. So when I worked out the time scales it was a lot longer as the full monthly payment was not been deducted from the balance.

303

CCCS_Sarah wrote: »

My friend had a Managed Loan with HSBC, when she asked me to look at the account on internet banking you can see the monthly payment deducted from the balance and just before the next payment the interest is added back on. So when I worked out the time scales it was a lot longer as the full monthly payment was not been deducted from the balance.

Well that's worrying - 10 years is a hell of a long time to be paying back a loan as it is - hopefully though, in our position given that we're on an interest rate of 0% above base rate, that won't sting us too much - we'll just have to keep our fingers crossed that HSBC don't hike up the APR further down the line...

lottie_no1

Be careful with a HSBC managed loan. I have one with them and at one point I was paying 12% APR, if the BoE base rate goes up then so will your APR and you will end up reducing very little of the outstanding balance.

CocoPopsLover

Does taking a managed loan affect your credit file?

Cleosmum

303 wrote: »

...the interest will be added back on? Can you explain that a little more, I don't understand - I thought interest applied to Managed Loans was "top loaded", which in my understanding means that the full amount of interest for the full term of the loan is applied at drawdown?

Ive just paid off my managed loan (:j) and I paid interest monthly.