Just a Quick Question

I currently owe £5802.36 as follows

HSBC Loan £4168
Loyds TSB Advance Card £1634.36 ( 0% till Feb 2006)

As you can see I have taken the best possible action i could have with the Advance card and i pay £40 a month to reduce this. At the end of the 0% period i will either pay off the outstanding balance in full or transfer it to another 0% deal.

The HSBC loan was for 10K but with interest and PPI the total ammount payable back was roughly 15.5K over 5 years at £260.50 per month. Im due to finish paying this 25th July 2006. However i have been saving money in an ISA and am currently in the process of transfering this to First Directs mini cash e-ISA to benefit from the higher interest rate. I intend to change ISA's again when the rate ends. At the current rate of saving i will have enough saved to pay of the remaining loan amount by the end of December, maybe even the end of November at a push. What i would like to know is that if i pay of this debt early as planned will i be refunded the remaining 6 months PPI that i Havent used? A friend of mine recently got an HSBC loan to cover all his existing credit card debt and existing HSBC loan and received around a £700 refund for PPI he hadn't used because the loan was paid off early, but im not sure if he got this because he took out PPI on the new loan. Hope what you've just read makes sense?

Any other advise regarding my situation would be helpfull

Thanks
Dave

Comments

  • Hey Dave,

    I can't be much help on this, but I thought I'd respond as I'm in a similar position and until I read your post this hadn't occurred to me! I'd be very interested to find out, any ideas anyone?
    Quit smoking 18/08/07
  • Davey

    I can only comment on my situation which is similar. I have settled a loan early, just last week in fact. Although this loan was with a different provider (A&L) I did receive a rebate of insurance premium.

    I hope that HSBC will do the same for you but I haven't a clue as to whether they do, or are legally obliged to do so.

    I suppose the best way to find out is give them a ring and ask.

    JC
  • Davey_2
    Davey_2 Posts: 55 Forumite
    Ok thanks

    After a quick re-shuffle of where my monthly wage goes I might be able to clear this debt now at the end of October, so i'll call in to the bank and find out for sure nearer the time. If I am entitled to a refund i'll put whatever i get, towards paying my credit card debt, that way i'll be able to clear both debts (hopefully) by christmas. If However HSBC don't give me a refund i'll just keep the savings building up in an ISA and continue paying off the loan as normal.
    I cant wait for the day when I have enough money in my various current accounts and savings acounts to cover the amount i owe on the loan and credit card, after nearly 5 years of being in the red it'll be nice to be in the black once again.:)
  • meanmachine_2
    meanmachine_2 Posts: 2,624 Forumite
    First Anniversary Combo Breaker
    Davey wrote:
    r 5 years at £260.50 per month. Im due to finish paying this 25th July 2006. However i have been saving money in an ISA and am currently in the process of transfering this to First Directs mini cash e-ISA to benefit from the higher interest rate.

    Here there.

    Total newbie so be gentle, but...why are you saving money in an ISA, accruing interest at say 5% when you've got an outstanding loan growing at a much higher rate?

    Can't see the logic in that. Withdraw the ISA, pay off the loan and you'll have saved yourself a packet. It means you've lost your ISA for the year, BUT most ISAs aren't that great when it comes to interest anyway, even tax free. Example: Alliance and Leicester's ISA is only around 4.10%, but their online saver, before tax is 5.35%, and there are no limits on how much you can save each year.

    My advice is, if you're in debt and paying interest, don't save, get debt free, then start saving again.

    Anyway, good luck with everything.
  • Davey_2
    Davey_2 Posts: 55 Forumite
    Sorry,
    I should have mentioned its a fixed rate loan
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