"Managed Loan"

Cantdance_2

Hi guys,

Following being turned down for a normal loan by HSBC they then offered me the chance to apply for what they called a 'Managed Loan' - when I asked what this meant all they told me was that the interest rate was basically higher!

Does anyone know anything about this and what it actually involves?

Cheers

James

Rafter

Given the amount of debt you have this is probably some sort of secured loan arrangement.

Given your debt summary, you are probably better off sticking with your current strategy and tackling the Marbles CC as a priority given the APR.

If you really can't afford the payments and have equity in your home you could consider a secured loan or extending your mortgage, but you will probably be spreading your debt over a longer period and need to be really firm with yourself about cutting up cards and not getting into more debt again.

You must also consider that you will be putting your home at risk, whereas at the moment your debt is unsecured so if your circumstances change you could enter into an IVA for your unsecured debt without being forced to sell your home.

R.

Cantdance_2

Thanks Rafter!

Yes I agree it is probably some kind of secured loan which I wouldn't touch with a barge pole!

It's not so much that we can't afford the repayments at the moment but we managed to get ourselves in February last year from being £600 overspent every month to having £200 a month spare after all bills and food (by means of serious cutting back and a bit of juggling!)

Unfortunately with interest rate rises that figure is creeping downwards again and we're now down to £100 a month spare which is still fine but it's nearing the limits of my comfort zone!

So I was looking at doing a bit more juggling of the slightly cheaper debts in order to concentrate more on the Marbles Card which has just gone up to 19.9% (eek!)

We'd worked out that if we'd rolled the HSBC Loan and Credit Card into one HSBC Loan for £25,000 at 7.3% we would have had an additional £200 a month which would have gone to making bigger inroads into the Marbles Card.

However, HSBC decided for whatever reason that it wasn't to be - even though we weren't asking for any more money at all from them.

Ideally I'd like not to consolidate but if I can be paying much less interest for my HSBC CC balance while I'm concentrating on paying off the Marbles card, I'd like to do it really!

Cheers

James

richmulch

i have a managed Loan with HSBC and let me tell you if you haveanother option take it its a rip off i got myself into a similar situation as you did and they said this was only option or they would eafault me so i thought ok £300 per month thats fine ive been paying it for 18 months and i still owe more than i borroweed to consolodate be warned!!!

Chris555_2

I too have a managed loan with HSBC - taken out 2 years ago when my business had to close through no fault of mine. at the time i had a business loan and business overdraft and personal loan with HSBC They said a managed loan was the only option open to me and said that the interest was exorbitantly high but when i got back on my feet i could convert to a normal loan and pay it off. 2 years later i am in a highly paid job but hsbc will not give me a regular loan more or less saying why should they bother as they would not earn so much. i can't get a loan from anywhere else as i have this hsbc loan. I pay £450 per month and only £17 comes off the capital. I am stuffed. Dont anyone touch a managed loan if there is any other option available ! I would like advice from any knowledgeable person out there as how i can fight HSBC on this one