Loan creditcard - pls help

Bigbelly_2

Hi, looking for some advice.
i'm with hsbc and have a loan with them for another 20 months at 6% interest which adds up to few hundred ££ as i'm over halfway paying back already (total was 48 months). i also have a credit card with them, but fully paid back, it remains open for emergency etc.
my question is, can i use my credit card to pay back my hsbc loan?
what i want to do is:
1. use my hsbc card to pay back my loan. my interest % will then be recalculated and whatever difference minus 2 month of interest will be paid back. there is no other fee for paying back early.
2. open another credit card with 0% of balance transfer and pay hsbc card off.
3. continue to pay of new credit card until paid (20 months tops, might be faster).

what do you think? can i do this? it all depends on point 1.

Gaz83

It makes sense if - and only if - you have the willpower not to rack up spending on the 'old' credit card, and remember that you're still essentially paying off the loan - just making an (albeit smaller) payment to the 0% credit card each month.

Debt consolidation rarely works but can be good for people who have the willpower to stick to it.

Tixy

Almost certainly you will not be able to repay the HSBC loan with an HSBC credit card as a purchase transaction.
HSBC credit cards do not offer money transfers (so you cannot transfer the money to your current account to then pay off the loan)
So the only way to move the debt to your HSBC card would be by way of taking out cash withdrawals on the credit card, which have withdrawal fees and incur interest from the date of transaction. You may also have a credit limit for cashwithdrawals that could be less than your outstanding loan balance.

Even if you do take cash withdrawals and then manage to get a new 0% card by the time you have paid the fees, interest and balance transfer fee you may not have saved much compared to keeping the loan as is.

If you did want to switch your loan to a credit card you could possibly look at applying for a card with 0% on money transfers (only a few cards offer this option).
Though a money balance transfer fee may not save much, if anything compared to the interest on your loan.

Bigbelly_2

ooh, thanks Tixy, I didn't realise the bit about hsbs would be so complicated. good thing i asked . probably not worth the hassle then..

thebritishbloke

It's worth contacting HSBC and asking them if you can pay it off with your credit card. Some finance companies allow this without any problems, others don't.

As a side note, make sure you get accepted for a 0% card with a high enough limit before you do this. If you pay it off and then can't get a 0% card, then you'll be stuck paying your credit cards rate (I'm guessing 18.9% with HSBC).

melanieann_2

please can some on tell me how to post a new forum about hsbc and were. Sorry if this is in the worng place the site doens texpalin how to set up a new post or I am not seeig it. Here is my long question!!

Never used this website so hope I’m in the right place. I took out a loan with HSBC in Sep 2009 for 5 years. Last year in Aug I went to see them as I was struggling with the repayments. I spoke to a ‘’special’ finance team who deal with this problem. The set me up on a 3 month payment break to help me. This was a help. The lady on the phone said to me once I started my payments in 3 month I would have 12 payments left. She also said my last payment would be April 2014. I questioned this and said If I have 12 payments how will it finish in April 2014? I didn’t get an answer she changed the subject and moved on.

I took my break and then I restarted making payments in Jan 2014 and I have made 5 payments since then. I am still in financial difficulties but if I miss another payment they have said they will refer me to a debt collector. I cant have this happen as I need to remove my ex-partner from my mortgage in September and this may jeopardise that. (any way that’s a whole other story).

In March April and May when I rang HSBC to make my monthly payment and I was told over the phone on all 3 conversations I had 10 payments left. After the 3rd month I was fed up of hearing 10 payments to go every time I paid. I wrote a complaint which basically said I was told 12 payments in Aug, I paid 5 payments since and keep getting told 10 payments left. How is this possible.

Hsbc called me back they said I did have 10 payments left and after an hour on the phone she finally understood what I was talking about. So this financial expert I spoke to had gave me the wrong information I had 15 payments not 12 left to pay. I took my loan in Sep 2009 but had a 2 month payments break so when I was told 12 payments initially I actually had 15 payments left. I now have 10 payments left and I understand why.

The problem I have is this has caused me further financial problems and after months and month of thinking I have 12 payments left I actually owe more than they told me. The lady listened to my phone call from Aug and she said I was given to wrong information and during the call I questioned this info and didn’t get an answer. I have now been offered a bottle of wine, a bunch of flowers or a box of chocolates as a good will gesture. I declined as I didn’t feel his was god enough especially when they have admitted giving me miss leading info when they were supposed to be specialist in finance problems and are supposed to help. I understand it was my loan and my responsibility but I was in a mess and assumed the info they gave me woud be correct. They told me they wouldn’t offer anything else. I told her I wanted a second opinion, they then offered me a hamper with different t-bags or a new born baby hamper with possibly a pair of booties and a blanket (I don’t drink tea). Does any one know what is in it and also do people feel I should accept this compensation? I don’t want to be ungrateful but I also don’t want to accept a gift that is useless to me. She couldn’t tell me what was in the hampers either. She said I would not be offered any thin further as I had no money loss. I feel I have because I thought I was getting these 12 payments out of the way and getting on track to now have to pay 3 more (my payments are £65 per month)

The lady who gave me the wrong information is no longer in the job role she was in and has moved to a different department. I have had a letter from HSBC saying my complaint has been upheld. I feel they should stick to what they told me and I should only have to pay the initial 12 payments they told me I had so I should only pay another 7 payments not 10. Am I unreasonable? Shall I accept the hamper and give it away to some one who can use it?

Tixy

melanieann wrote: »

please can some on tell me how to post a new forum about hsbc and were. Sorry if this is in the worng place the site doens texpalin how to set up a new post or I am not seeig it. Here is my long question!!

Each board on the forum has a icon on the left hand side at the top and bottom of the list of threads.

This forum help also demonstrates how http://forums.moneysavingexpert.com/forumhelp.php

Anyway in response to your question.

I think it is unreasonable to expect them to write off 3 months worth of payments when you now know and accept they are due, just because they made a small error in the information they gave you. Whilst she may have said 12 payments she also told you that the repayments would finish in April which was correct. Your own paperwork would have confirmed the correct amount of remaining payments.

That said I think offering your gifts as a goodwill gesture and not a monetary goodwill gesture is something you could press them to change. I would perhaps suggest to them that you have no use for the hampers they have offered you and as you are in financial difficulties would prefer a financial goodwill gesture - you may get them to offer you something in the region of £25 maybe up to £50 max.