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HSBC loan repayments help?

Discussion in 'General Chat' started by campbell, Nov 22, 2007.

  1. campbell
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    campbell Member

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    hiya

    just a bit of background info on me , i have a personal loan with HSBC for 3 years, i have paid off a previous loan off (£5000) and i have never missed a payment on any loan so have a high credit rating. i have paid half the loan off to date.

    Can repayments be froozen for a period of time because i my personal circumstances may change in the next twelve months and may not be able to pay the repayments?

    i dont have laon protection because i think its a rip off, i could sort other arrangements out to pay the loan off if i cant do myself.

    any advice would be much appreciated, thanks in advance

    Lee

    Lee
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  2. jcs356
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    jcs356 Brum brum

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    You might be able to have a repayment holiday. Best speak to HSBC I guess as in this current climate, they will look at each individual case rather than having a generic rule.

    Other alternative is to take another loan out to repay the HSBC one which has an immediate payment holiday - you certainly used to be able to get these - e.g. no repayments for 6 months. Need to check you won't get stung by HSBC for an early repayment charge.
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  3. Shades
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    Shades Member

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    Yep, all of the above!
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  4. motorbikez
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    motorbikez Active Member

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    What ever you do don't default on the loan, I would make an appointment with loans manager ASAP and explain your circumstances to them and hopefully you will come to a mutually acceptable solution.Banks arn't that bad if you are up front with them.After all it is in their interest for you to pay back loan.
    Good luck.
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  5. jdp1962
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    jdp1962 Grumpy Old Moderator Staff Member Moderator

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    Loan protection is a rip-off if you take it bundled with the loan from the bank. That's because they charge a lump sum premium at the outset (which is high in itself), then they add that premium to the cash loan you're borrowing, and charge you interest on it as you repay each month. If you want to cancel the cover early, you only get back a small proportion of the lump sum paid at the outset. That's why it's a rip-off

    But you can get a very good value stand-alone loan protection policy on the internet, where you pay a small premium each month, and can cancel whenever you like by simply stopping the premiums.

    Replacing one loan with another is not a good idea, as you just end up paying interest on interest. The suggestion to talk to the bank is a good one, but it will only agree a reduced payment if you are facing genuine financial hardship, and it will expect you to submit an income/expenditure analysis to prove it. And even then, you will end up paying more interest in the long run, because you then take longer to repay the capital.

    So, to be honest, if you have the means or repaying it early, your best bet is to do so or, grin, bear it & leave things as they are until it is repaid on schedule.
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  6. campbell
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    campbell Member

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    thanks for advice guys. i think i will go and see the bank manager tommorrow at my local bank and explain my circumstances and what might happen...my personal problem might not happen yet and i will continue paying the loan off no problem. But i like to know what can happen and what to do if it does!
    i wouldnt like to pay another loan off....but the bank really likes me because of the 12k loan they gave me at 6.5per cent and the money was available there and then!

    so thanks for the advice again

    Lee
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  7. claudefrog
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    claudefrog Member

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    if your circumstances are going to change, could you sell the car and settle the loan? meaning you dont have the car, but it could save you a load or trouble!
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  8. richjohnhughes
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    richjohnhughes Member

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    asked to just pay the interest for a while - but give them a good reason.
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