Viewing 14 posts - 1 through 14 (of 14 total)
  • help me reduce payments on a loan please STW
  • Kevevs
    Free Member

    I’m having a sort things out day. and you lot know everything..

    Long story short, I got into a financial prob in 2007 and consolidated stuff into a managed loan with hsbc. I’ve been paying off the £9000ish managed loan since then at £200 per month. which is hard work on my wages. It’s now down to £3700.

    I’m certainly no financial whizz. At all. but I’d like to know what would be the best way to pay off this last £3700 at less than £200 a month.

    any experience or advice would be great guys. As far as I know I don’t have any bad credit history.

    cheers.

    jam-bo
    Full Member

    Pay less = take longer to pay off, pay more interest
    Pay more = get it clearer sooner.

    If you can afford the £200 a month, why change anything?

    highclimber
    Free Member

    Interest free Credit card. you can get ones that are 0% for 13 mnths from Tesco and if you have a fair Credit rating you can usually get £2k limit.

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    TinMan
    Free Member

    What is your current interest rate and how much would it cost to pay it off now and start an alternative process?

    Considering that you’ve managed this for 3 yrs+ and only have 18mths to go, why do you want to change the process, as it almost implies you’re loooking to defer the debt or extend the term, all of which will cost you more in the long run.

    Stoner
    Free Member

    hc – the problem with that is that in order to amortise a 3,700 loan in 13 months he’s going to have to pay in at the rate of £284 pm. Since he’s trying to reduce the cost of servicing his debt if he paid in less than that then in 13months time he wakes up with a debt of, say, £1750 (having paid in at 150pm for 13 months) at the credit standard rate which will be considerably higher than his managed loan with HSBC.

    Kevevs
    Free Member

    jambo. I can’t afford the £200 a month any more. that’s why I’m asking.

    TheMooMonkey
    Free Member

    I worked for HSBC and i should say that if you have a managed loan then you will have a bad credit rating, sorry. HSBC managed loans are awful things as im sure you know.
    The problem is that if you apply for more credit, and its refused your credit rating will worsen.
    My advice is to try and keep your 200 payment going for as long as poss. If too difficult go to the HSBC and see if they will re-issue the loan for the remainer. of course this will mean longer payback time but less per month. The key here is that you go and TALK to hsbc (and take an expensis sheet).

    Kevevs
    Free Member

    Thanks moomonkey. I thought that. Just thought there might be some magic thing… cheers.

    BigJohn
    Full Member

    The only magic thing is to take out a cheap loan just in order to fund your repayments on the managed loan. Fine in practice (if you can get one) but willpower tends to get in the way.

    If you’ve had a spotless record on keeping up your repayments, your request might be taken seriously.

    Kevevs
    Free Member

    yup spotless on the repayments.

    molgrips
    Free Member

    Get another loan perhaps.. but basically just call the bank. They might extend it, or re-do it. Might end up payaing more interest but less per month.

    Kevevs
    Free Member

    i’m no bothered about more interest, or a bit more long term, just managing a payment a month that is lots less than £200. Time for a HSBC chat then….

    wrightyson
    Free Member

    Surely having kept up a 200 nicker repayment for 3yrS will have helped your credit rating?? Go speak to them but if it was over a fixed period there may be some “get out” penalties??

    john_drummer
    Free Member

    the only thing I can think of is a loan of £3,700 over a longer period than the remaining 18 months – and the first people to ask would be your current lender

    example, over 5 years, it could be as little as £90 a month – but you’d end up paying a total of almost £5,300 (£1,600 in interest, that’s almost 1/2 of your outstanding balance). If you can live with that, it might be worth trying. I got that figure from a market comparison website, not all loans will be as low an APR as that…

Viewing 14 posts - 1 through 14 (of 14 total)

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