On a DMP - managed loan advice needed!!

sarriep

I am going to contact CCCS about this but wanted some advice first! We've been on a DMP for just over 2 years now and have maintained the agreed payments. Most of our creditors have vastly reduced or completely stopped charging us interest except for HSBC. For every £34 we pay each month they take nearly £29 in interest. This means at this rate it will take nearly 40 years to repay. They have sent us a letter saying they will continue to accept the agreed payments if we take a managed loan. They would charge us a total of £195 for this (4% interest on £1750).
I've told DH that we can't take on more debt which is what this would be but he says at least we would be reducing the debt to HSBC.
Any advice welcomed!
Sarah

WASHER

I thought if you took on any further debt whilst on a DMP, your DMP could be revoked.

HSBC are being very naughty by even suggesting this whilst you are on a DMP. Seek advice from the CCCS before you do anything.

saxysarah

sounds dodgy to me def contact CCCS before anything - don't see how they can 'stop' accepting the agreed amount anyway if its been done via DMP and potentially once everything else is sorted you could hopefully use the extra money over to overpay them if you wanted to?

sarriep

Thanks. I agree about taking on extra debt. HSBC are SUCH a pain. The worst for still charging high interest. I'm sure they are flouting some lending guideline as well by suggesting we should take on MORE debt. On the flip side this agreement would see them paid off in 65 months as opposed to about 400 months at the current rate we are paying. I will contact CCCS though and see what they think before replying to HSBC.
Thanks