HSBC Managed Loan

nat78

Hi

I hope someone may be able to offer some advice. I am in a considerable amount of debt, but feel that most is 'under control' (interest rates are reasonable and I am making regular payments). However, my managed loan with HSBC really concerns me. I opted for the managed loan in Feb 2005 when i was in a really tight spot and felt i had no option. It consolidated an existing loan with HSBC, a credit card with them and a small overdraft. The total was £14,500. I was told that my repayments would be £220 a month and the interest rate would be 14.9%. I also had my switch card replaced with a solo.

However, i was also told that after 12 months, my status could be reassessed and HSBC may be able to give me a switch card again, and more importantly, change my managed loan to a regular one with lower rates of interest. This was a huge factor in my decision to go for the managed loan. I have made my repayments without fail, kept my current account in credit and receive a regular income. Now, 16 months after taking out the managed loan i am finding that HSBC are refusing to help me in any way - the standard response is that they cannot increase my borrowing. But i am not looking to increase my borrowing, i want to reduce the interest i am paying. Is there anything i can do? I do not have a credit score decent enough to get a loan elsewhere.

Any advice would be great!

chicken1144

Hi Nat,
I'm Afraid I can't be of much help but I'm in a similar situation to you. I have debts with hsbc (and other places but not as big) and I can't use my account due to a 2,000 overdraft and also a loan with them. They have offered me a managed loan of about 5 and a half grand to clear it. But the interest is only 5.5% ?? It's also flexible. I am dubious to take it though because they have been so so so unhelpful in the last year that I have had difficulties. I don't really understand why your loan is different to the one they are currently offering me, but I have posted my question on the site and have had a couple replies I am looking into. So I just thought if you check out my replies it may be of some help?? Don't know!!! Sorry not alot of help.
Chicken1144

Another_1_Bites_The_Dust

chicken1144 wrote:

They have offered me a managed loan of about 5 and a half grand to clear it. But the interest is only 5.5% ?? It's also flexible. I am dubious to take it though because they have been so so so unhelpful in the last year that I have had difficulties.

Don't fall for it until you have checked EVERYTHING. As per my post just now, I'm completely stuffed because of what they've done. On £90a month I pay on average £71 a month interest. They make it sound like you should be grateful of the help and the '''''''flexible''''''' payments.

rog2

Be very wary of HSBC Managed Loans - I had one several years ago - after one year, they were prepared to re-negociate, but only if I secured it against the house and took out an endowment - amount of loan - £5k. :mad: :mad: