HSBC have offered me a "managed loan" - not sure what to do

Janus1273

Hi, I'm new here.Bit of background - partner & I have run into debt problems and recently wrote to creditors , using the standard letter from the CCCS asking if we could pay £30 a month for a while til we get back on our feet. I had a loan for about £4k with HSBC and about £300 on a cerdit card with them. They've written back offering a managed loan with payments of about £53 a month over 144 months (!) and its variable so I assume they can just put the interest rate and payments up if the BOE puts their rates upReally not sure what to do. Our house is on the market and the intention was to pay off the loan with any profits but not sure when it'll sellAny advice?ThanksJane

bargainbetty

Personally, I would reject any form of further debt. It's an automatic reaction for them to try to get you to take out another form of debt with them, they just want the money.

I'd politely reject it, and ask that they accept the terms you have offered and freeze the interest, saying that you don't want any further or alternative debt, particularly one with variable interest.

I'm sure other people will be along to give suggestions too - hope you get it sorted soon.

Good luck

Janus1273

bargainbetty wrote: »

Personally, I would reject any form of further debt. It's an automatic reaction for them to try to get you to take out another form of debt with them, they just want the money.

I'd politely reject it, and ask that they accept the terms you have offered and freeze the interest, saying that you don't want any further or alternative debt, particularly one with variable interest.

I'm sure other people will be along to give suggestions too - hope you get it sorted soon.

Good luck

Thanks, thats good advice,I will do thatJane

RAS

Janus

If you accept the loan you will probably have to continue paying even if you have the readies to clear the debt, or pay a penalty fee to get out of the arrangment.

Write back and tell them that you hope to pay off in full as soon as you sell the house.

System

I'd run, run like the wind. The GF had one of these, and the t & c's are terrible for starts. An example: you CANNOT overpay at all. You can however pay it off in full.

She took a managed loan for £1000 and if she had not woken up, she would have ended up paying back ~£3K over a long long period of time.

She said it was SOOOO satisfying just walking into the bank (after all the hassle of one part of HSBC not knowing what the other was doing) and slapping the outstanding balance down, in cash and telling them where to stick their account, hint it finishes in rse