Help! I've got a managed loan!

cheesypeas_3

Hi

I recently changed jobs and was shopped by my previous employer on my last pay check, they refused to pay my last pay on pay date and instead sent me a check at the end of the month. As a result, I was skint. I had already maxed out my credit card and overdraft and did not have a good credit rating. I was relying on that last pay check to tide me through until pay day with my new employer. When it didn't show, I needed money fast. HSBC told me my only option was to get a managed loan with them (with a high interest rate) to cover everything I owed and free up a little cash to survive.

4 months or so later I am now earning nearly twice as much money. My managed loan is like a noose around my neck. I don't have any credit with HSBC because of it. I would like to take out a cheaper, more flexible loan to pay off the managed loan. Because with the managed loan the only repayment options I have are to either: pay it all at once, or pay the set instalments. I have a bad credit rating with HSBC, so I imagine that I will have a bad rating elsewhere too. I don't want to apply elsewhere just incase it makes my credit rating worse!

What can I do? I am stuck in a HSBC trap! :eek: The only option I have is to either pay the £150 monthly instalments for the next 2 years or so :mad:
Or save up some money until I have enough to pay the loan off in full! I currently owe the bank just under £3000. I am earning close to £35k.

Please help! I want to break free!

Rafter

As your circumstances have changed and you have not defaulted on any debt, I think you need to talk this through with a real human being at HSBC.

The 'computer will say no' but a real human may be able to sort it out and get your credit rating back to normal.

The only other option as I see it is to find a lender who will not hold you managed loan against you and lend you enough to pay off HSBC so you can walk away. The only other option might be 'Bank of Mum and Dad'?

Good luck.

R.

cheesypeas_3

Already tried the chat with HSBC route, not very helpful. Ma & Pa aint an option, they've got less money than me! I'll have a chat with another bank.

Thanks

asandwhen

let us know how you get on - I had this problem with HSBC years ago - when I applyed through a different bank I was offered the earth.... You maybe suprised.