HSBC Loan

SNAKEY2_2

a hsbc loan of £10750

have made 14 payments since november 2003

repayment each month = £269.96 + credit payment protection = £49.98

which = £319.94

however I must admit I am struggling to keep my head above water and am looking at ways to reduce my outgoings each month. I am considering cancelling the payment protection of £49.98 each month. Is this easy and straight forward to do, I know that finance companies dont really recommend it, but it will free up an extra £50 so that I can make payments elsewhere.

also after this is it worth applying for a loan elsewhere, the apr is 9.9% on this loan, something like a northern rock loan where I can make the min payment and pay more each month if I wish...would they offer a lower apr.

any thoughts/suggestions are appreciated.

thanks

Debt_Free_Chick

Normally, you can't just cancel the payment protection insurance (PPI). The reason is that you bought a "package" made up of a loan and PPI. In order to cancel the PPI, you normally need to cancel the existing package and buy a new loan on its own. The existing lender (HSBC) will probably give you a quote for this. But, be aware, that this will be a new loan on current terms so the interest rate could be worse than what you've got.

Trying to arrange a different loan depends on your credit record and the view of the lender e.g. Northern Rock. If you apply direct to Northern Rock, they will see that you currently have a loan. This can affect the terms they offer you, if they think you want a new loan in addition to the existing loan. Better to apply by telephone so you can explain that you want the new loan to pay off the old loan.

One worrying thing ... is that £50 will make a real difference to you. Are you living beyond your means? Perhaps its time to take a hard look at where your money goes to see if you can cut back somewhere.

HTH