HSBC loan tied into full term - SOA added

The_Goatreich

Hi,
I currently have a loan with HSBC that has £8087.04 outstanding which I'm paying off at approx £225 a month and have just under 3 years left.

My problem is that this loan alongside my mortgage and bills is bringing me just over the breadline every month and I can see myself slowly getting into more debt again. What I'd ideally like to do is move the loan somewhere else to get a lower monthly payment so that I'm back in the monthly black. However, my dilemma is that when I first got the loan (just over a year ago) HSBC slapped all the 4 years interest on right at the beginning, so in the year I've had it all I've done is pay off the 4 years interest, if I've just given away the money for nothing. Also, if I keep the loan for the full term there's a "reward" at the end which is a percentage of the interest paid back. This will work out to approx £900 if I remember correctly.

Has anyone got any advice for what I should do? Keep the loan as it stands and just live hand to mouth for the next 3 years until it's clear or bite the bullet and move it to a lower monthly payment (whilst not borrowing anymore)?

SarahNeedle1872

Bumpety bump

peb

I would stay stick with it if at all possible. As the interest is front loaded as you say you would only end up paying interest twice. As you are struggling maybe you could post your SOA (statement of incomings and outgoings) and possibly try a spending diary to see if money can be found elsewhere in your budget.

Kepp posting!

The_Goatreich

OK, my SOA:

Incoming:
Wages: £1249.97

Outgoing:
Mortgage - £639
Loan - £224.64
Mobile - £30
Credit Card - £50 (balance £1013.14 @ 0% APR)
TV license - £27
Electricity - £27
Water - £28
Council Tax - £91
Gas - £27
House insurance - £23.82
Phone/TV/Broadband - £30
Pet insurance - £6.29
Band rehearsals - £40
Food - £100
Petrol - £150

Total: £1493.75

Some of the above outgoings are variable, but that is an average.
As you can see this leaves me £243.78 in the red every month, to combat this I'm going to have to ask my girlfriend to give me £250 a month towards the house and bills. Which will JUST keep me in the black.

peb

OK - I'll have a look at this when I get chance (I am supposed to be working!) but if you amend the title of your thread to say "SOA Added" more folk may come along who previously thought that they could not help. Can you ley us know the outstanding balance and APR on your credit care and, if you share your house with your girlfriend you may need to negotiate contributions.

SarahNeedle1872

andimorris wrote: »

OK, my SOA:

Incoming:
Wages: £1249.97

Outgoing:
Mortgage - £639
Loan - £224.64
Mobile - £30
Credit Card - £50
TV license - £27
Electricity - £27
Water - £28
Council Tax - £91
Gas - £27
House insurance - £23.82
Phone/TV/Broadband - £30
Pet insurance - £6.29
Band rehearsals - £40
Food - £100
Petrol - £150

Total: £1493.75

Some of the above outgoings are variable, but that is an average.
As you can see this leaves me £243.78 in the red every month, to combat this I'm going to have to ask my girlfriend to give me £250 a month towards the house and bills. Which will JUST keep me in the black.

Hi again! Ur figures actually don't look too bad...
Does ur girfriend live with u permanently? If she does, she needs to contribute to the household in some way...... Does she work?
Also do u have anything u could eBay/Amazon to make a litte extra cash? Are u or ur gf able to get a second job?

Sarah x

tyllwyd

You have included petrol so I guess you have a car - you need to add in your car insurance/mot/road tax to get a realistic picture.

The_Goatreich

Yes she does live with me, and has just got herself a good job, but recently the payments have been a bit all over the place due to it starting as agency work and it being a new job. She is happy to contribute, but I don't want to seem like I'm ripping her off, which is why I thought the figure of £250 including bills was fair.

I fix PCs outside of my day job, and that brings in some money, but not a huge amount, and isn't a reliable figure to budget against.

The_Goatreich

tyllwyd wrote: »

You have included petrol so I guess you have a car - you need to add in your car insurance/mot/road tax to get a realistic picture.

Yes, I always try and get these type of payments done in one go rather than monthly, and I realise that I should factor these in and probably do an annual budget for the grand scheme of things.

SarahNeedle1872

To be fair, if she's living with you, she should be paying half of all the bills.... that means half of EVERYTHING..... food, insurances, tv license, elec, water.... After all, if ur house was broken into (God forbid) and her stuff was stolen, it would be covered under ur insurance, so she should pay half.
I know that sounds a bit harsh, but it is only fair. £250 inc bills doesn't even cover half the mortgage payment..... I'm not suggesting she pays ur martgage too, but u need to make sure ur not screwing urself just to be nice.
Perhaps u could give her a list of what all the bills cost,or show her old bills, and what her half is, so she knows that ur not scamming her. That will free up some xtra money to put towards ur debts.
Also, u could explain that because u have the debts, u need her to help contribute a bit more to the household..... I'm sure she won't mind

Sarah x

melie3

andimorris wrote: »

Yes she does live with me, and has just got herself a good job, but recently the payments have been a bit all over the place due to it starting as agency work and it being a new job. She is happy to contribute, but I don't want to seem like I'm ripping her off, which is why I thought the figure of £250 including bills was fair.

I fix PCs outside of my day job, and that brings in some money, but not a huge amount, and isn't a reliable figure to budget against.

im sure she wouldnt think your ripping her off. lets face it where ever she lived she would be paying rent etc. if she is using elec gas, water then its only fair. have you told her that you are on a tightrope??