Please Help !!!

tomsy77

I have a personal loan with hsbc. And I'm in arrears by 5 months. They are issueing a final demand within 28 days !. We only have 25 pounds per month desposable income. They have suggested a management loan to me, and i've placed the figures below. p.s i'm trying to get my bank charges refunded but this wont help in time


Loan owed - 8.710
payment arrears - 945.25
management loan payments - at 17 percent APR - 116 pm over 144 months
management loan payments - at 6.7 percent APR - 87 pm over 144 months

we dont havent enough money to cover any of the above. Even if we did then we would be increasing the total debt due to interest over such a long time.

Has anyone else had a court order on a loan before, if so then any advice would be greatly appreciated. - many thanks

brownie2

Hi, I cant give you advice on court orders, but if disposable income is an issue I recommend going over to the debt free wannabe board. They're great for giving adivce on where to cut back on your outgoings so you can throw more at your repayments.

asandwhen

a court would not let you pay something you cant afford - Please dont get this managed loan you will just end up paying more over a longer period of time - tell hsbc how much you can afford (i.e £25) and pay them this - otherwise contact the cccs, payplan or c.a.b they maybe able to help -
DONT SIGN FOR A NEW LOAN.

tomsy77

I used the money to pay mine and my partners other creditors.
So I cant recover any of the money. I think court action is the only way to settle it. I simply dont have the money to keep them happy

Gemmadm

Hi try the CAB or CCCS for advice. Have you thought of a debt management plan where they will look at your disposable income and how much you need to live on and spread the rest to your creditors. Don't go with the fee paying companies you see on TV.
Gemxx

JoeK_3

tomsy77 wrote: »

I used the money to pay mine and my partners other creditors.
So I cant recover any of the money. I think court action is the only way to settle it. I simply dont have the money to keep them happy

You need to prepare an income and expenditure statement on a monthly basis and send them a figure that you can afford.

Continue to do this each month without fail until your circumstances improve.

When writing to the bank ask them to suspend interest rates until your circumstances improve.

Do it now!!!

JoeK

Pobby

Hi tomsy.Repost this on debt free wannabe.Think it may be a better forum for your problem.

Eager_Elephant

Hi tomsy

Don't panic.

What is a default in the grand scheme of life?

I think it's good that it has got this far, once a default has been issued the likelihood is that your account will be passed to the Debt Recovery Dept of HSBC or it will be passed onto an outside agency to collect.
The good thing is that the interest will stop and they are able to accept lower payments than HSBC are, so if you only can afford £25pm then offer them this.

I hope you have no other accounts with HSBC, if you have a current account then change accounts as soon as possible as in the small print they are able to move money from any account into another one held with the same bank.

I agree with someone else above who said send them an income and expenditure and offer £25pm, although they will turn it down keep paying the money into the loan account as it shows willing and by the time the account has passed on they won't be able to say 'oh you haven't paid a penny for months' . Instead you will be able to say 'yes I was unable to maintain my monthly payments but I did pay what I could afford, I was not ignoring the situation'.

Good Luck, come back with any questions

EE