HSBC Managed Loan

Jeeves1983

I had quite a few difficulties with hsbc. I had an overdraft which i was always in, a credit card that was maxed out and a loan. Because i couldn't make all the payments at the time they set me up with a managed loan. The problem is i have worked out it is a staggering 44% interest. £68.50 out of my £155 pm goes on interest. Is this right? What can i do about this if anything.
Please Help me as this seriously affects how quickly i can pay off my loan.

CLAPTON

how much is the loan for
how long is the loan for
what is the monthly payment

Jeeves1983

The loan is £11871 and the minimum payment is £155 per month. Unsure how long it is for. Quite a few years id expect at the rate at which it is going down. About another 10 years i think.

CLAPTON

if, and only you can say, you have a loan of 11,871 over 10 years and you pay 155 per month then the APR is about 9.5% which isn't too bad.

however if the figures are wrong then the answer is wrong

why do you think its 44%

Jeeves1983

£68.50 out of my £155 pm goes on interest. I have worked out that it will take me 11 and a half years and pay over £21000 to get rid of it. Is my maths correct? i need help as this debt is killing us aty the mo.

CLAPTON

If you currently have a loan outstanding of 11,871 and you are paying £68.5 per month in interest then the interest rate you are paying is as follows

= 68.5x12/11,871 % = 7% which is amazingly good

and based on that interest rate and you're paying a total of 155 per month then it will take about 100 months (8 years 4 month) and cost a total of 15,500.

Now if you are struggling to make the repayments I would suggest you go over to the debt freewanabe board, read the 'sticky' in the second tread and post up an SOA (details of income, spending and debts and other details) and see if we can help you there.

Jeeves1983

thankyou so much. my maths is terrible. I have inputted all my details into the snowball calculator too. see how that ends up.
thanks again