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Dilemma about closing down my HSBC loan....

Powellie
Powellie Posts: 22 Forumite
Dear All

I borrowed £21k + PPI (£85 per mth!!!) + Interest @ 6.9% over 7 years last summer and was made redundant before Xmas. I made a claim on my PPI which was granted at the beginning of the year and received one payment (£399).

I am new to this site and saw all the stories about cancelling PPI so I enquired about doing this and HSBC said that I can but I need to close the loan down and start it up again. Now they will only give me 7.9% rate and my settlement fig is £25k because of their special little rule or 78 or whatever its called and the fact I made one claim on my PPI. I've been with the bank 11 years and I have my current a/c, loan and CC with them.

NU have said that if I pay back my one payment to them they could refund my PPI which would give me some instant cash but if I have to start the loan up again my outgoings would only be £15 less per month without any PPI.

My aim is to reduce my monthly outgoings.

What are my options everyone?

Would I get 6.9% on £25k anywhere else that easily?
Should I close it down and spread it out over the maximum duration? (I will probably add it to my mortgage when I re-mortgage later in the year).

Thank you in advance

Yours frustratingly

Powellie
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