Slightly concerned.....

iwanttobreakfree

I have a managed loan with HSBC (big mistake didn't realise it at the time!). Anyway on my agreement I have signed it says monthly payments £185 and that the last payment is Jan 2008. I have checked my oustanding balance today and the amount left outstanding does not add up. When i divide it by the 6 payments left outstanding I would have to be paying about 258 quid a month to clear it by Jan 2008.

I have a nasty feeling I am going to get a rather horrible surprise - am I right in thinking this or if they demand more money after the last payment can I slap my agreement down in front of them and call it cleared? I found out today that my apr is 10.15% ABOVE the base rate - so its not even fixed!!!! I had never thought to know my rates before reading this site and they definitely didn't make it clear to me when everything was going through - bit peed off I have to say :mad:

Conor_3

A managed loan? Is this where you had a loan and defaulted so are making lower payments?

If so, then the final payment date on the original agreement goes out of the window as unless the interest was frozen, it's being added to the outstanding capital balance which will be going down slower due to the reduced payments so it takes longer.

iwanttobreakfree

Hi Conor

i did miss one payment and when I called them to say look im struggling the only option they offered me was the managed loan (though I think they manipulated me imho knowing what i know now).

I am looking at my agreement right now and it says payments start Jan 2004 - payments at £185 and then a further 50 payments. It definitely gives an end date but my balance on the account is suggesting differently. Confused!

Imelda

Hi there,

If the interest rate charged is variable but the payments fixed then the agreement you have would have been based on the interest rate of the day (which I think was less than 4% at the end of 2003). Have you put it into the snowball calculator to see how long it will take to pay off?
I would speak to HSBC and see if they can send you a new schedule...

Imelda

I think you would finish paying it in april/ may 08

iwanttobreakfree

Yeah your right that's what the snowball said - I'm quite annoyed as they haven't advised me that the payment schedules have changed. If the base rate increases anymore it will take longer than may 08

iwanttobreakfree

damn its going up to 6% soon