HSBC Managed Loan

ManualLabourer

I took a managed loan with HSBC some years ago after getting in to financial difficulty. I have no problem meeting my monthly commitment by direct debit, but it is taking an age to reduce my balance. I was told, over the phone, that I would clear my loan in 'around 5 years'. Unfortunately I have no evidence of this, and 5 years have about passed. I notice form my online account that I have a balance of circa £5.5k to pay and an "available balance" of just over £1k. Can anyone explain what this "available balance" is? I would have thought that all payments I make would go straight to my loan ... why is there a 'credit' (it's shown as such on my online statement) of over £1k sitting there? I've phoned HSBC about this and got a vague reply. Also, I cannot access or do anything with this 'credit' (I asked just out of curiosity). It looks like there is money sitting and not doing anything for me or my loan; this has been a common feature (the amount varies) for some time. Any information would be most welcome.

samjef11_2

ManualLabourer wrote: »

I took a managed loan with HSBC some years ago after getting in to financial difficulty. I have no problem meeting my monthly commitment by direct debit, but it is taking an age to reduce my balance. I was told, over the phone, that I would clear my loan in 'around 5 years'. Unfortunately I have no evidence of this, and 5 years have about passed. I notice form my online account that I have a balance of circa £5.5k to pay and an "available balance" of just over £1k. Can anyone explain what this "available balance" is? I would have thought that all payments I make would go straight to my loan ... why is there a 'credit' (it's shown as such on my online statement) of over £1k sitting there? I've phoned HSBC about this and got a vague reply. Also, I cannot access or do anything with this 'credit' (I asked just out of curiosity). It looks like there is money sitting and not doing anything for me or my loan; this has been a common feature (the amount varies) for some time. Any information would be most welcome.

Available balance is the money that is yours to spend after the bills debit have come out of your account.

noah271007

ManualLabourer wrote: »

I took a managed loan with HSBC some years ago after getting in to financial difficulty. I have no problem meeting my monthly commitment by direct debit, but it is taking an age to reduce my balance. I was told, over the phone, that I would clear my loan in 'around 5 years'. Unfortunately I have no evidence of this, and 5 years have about passed. I notice form my online account that I have a balance of circa £5.5k to pay and an "available balance" of just over £1k. Can anyone explain what this "available balance" is? I would have thought that all payments I make would go straight to my loan ... why is there a 'credit' (it's shown as such on my online statement) of over £1k sitting there? I've phoned HSBC about this and got a vague reply. Also, I cannot access or do anything with this 'credit' (I asked just out of curiosity). It looks like there is money sitting and not doing anything for me or my loan; this has been a common feature (the amount varies) for some time. Any information would be most welcome.

I used to have a managed loan myself so I can understand what you're going thru here. The available balance is only showing what you have paid into the managed loan account. It is not a credit facility for you to have. The more money you pay into the managed loan account, the quicker you pay it off with less interest. You cannot get further credit facilities until loan has been paid in full. Not even cg debit card.

mummytotwo_3

Hi there, managed loans are a menace!!! I used to work for HSBC they always set up the minimum acceptable repayment to them which is over a 12 year period, this is why its taking you soo long to repay the loan, and the interest rate is always exceptionally high!!!!! My advice is if you can either move it to a main stream loan, or try to increase the payments you make to the loan every month by making additional payments via internet banking. As when you have an outstanding balance of 1k, they will usually convert this to an reducing overdraft over 12 months!