HSBC - Loan Help

ratrace
ratrace Posts: 1,020 Forumite
Part of the Furniture 500 Posts Name Dropper
Evening all
looking for some help on a hsbc loan i have just taken out here are the details

Original Loan ammont - £8,000 for 60 months @ 15.9% ( i know its high) £188 per month
Total payable if i run the loan for the full 60 months is £11,260 approx
which means the interest is £3,400 approx ( which is silly and a lot)

so my question is i can afford to pay approx £500 - £1,000 per month overpayment which i assume will reduce the time it takes to pay it off plus save a load of interest as a result

when i log on i to my hsbc banking app i can see in the loan section that i have (-£11,260)
i have not made any payments yet as its a new loan, so if a was to pay £1,000 straight away off the loan in the next few days would the re calculate the (-£11,260) figure to reflect the saving in the interest or would it just say (-£10,260)

i did call hsbc today but the chap i spoke to was not very clear plus i had to end the call as my break had finished

also how should i make my overpayments should i call them each time or shall i just transfer from my current account

thanks for all your help in advance
People are caught up in an egotistic artificial rat race to display a false image to society. We want the biggest house, fanciest car, and we don't mind paying the sky high mortgage to put up that show. We sacrifice our biggest assets our health and time, We feel happy when we see people look up to us and see how successful we are”

Rat Race

Comments

  • Hoenir
    Hoenir Posts: 7,081 Forumite
    1,000 Posts First Anniversary Name Dropper
    Would be £7,000. Interest will be calculated on the daily balance and charged once a month in arrears. 
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