bank charges and need to pull belt in

novelli

Hi not sure if anyone can help, but i have recently seperated from my husband and need to pull the belt in as much as possible. I have a managed loan with HSBC bank, it has around 8000 left on it,and i am paying 150 per month, but out of this they take 85.00 in fees!!! I dont have a good credit rating so getting loans or cards from othe rplaces isnt easy. but i would really like to try and get the money to pay off this loan so i am not paying so much interest each month.

Does anyone have any ideas.
thanks

rog2

Is this being managed by HSBC? £85.00 per month is nearly 60% of your payments in charges - ouch! You will not be free of this for another 9 years.
Have you tried talking with CCCS or PAYPAL?

hula-hoops

Is the loan in your name or is your ex-husband in any part responsible for the payments?

Could you try and transfer some of it to a 0% or low-rate credit card to reduce the fees? That way you would be paying it off quicker.

Tallymanjohn

When you say 'fees' I'm guessing (hoping) you mean interest charges as well? in which case £8,000 over 5 years at about 5% works out at £150/month so it's about right - of course the interest charges will obviously decrease over time as the balance goes down.

CLAPTON

if you're struggling financially in your new situation why not post a Statement of affairs (full details of income , outgoings, and debts/interest rates/payment amounts) and see whether people can offer any suggestions and advice.
for more details see
http://forums.moneysavingexpert.com/showthread.html?t=107280

novelli

hula-hoops wrote:

Is the loan in your name or is your ex-husband in any part responsible for the payments?

Could you try and transfer some of it to a 0% or low-rate credit card to reduce the fees? That way you would be paying it off quicker.

Can i do this tho, as i dont have a good credit rating im pretty sure no one will give me a credit card??