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HSBC Managed Loan Campaign


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hmmmm 12.1% apr. Im gonna find my agreement later today (im in bed at the min ha) and remind myself what mine was. I know it involved factoring in the bank on england base interest rate or whatever its called. Thankfully because of the ressesion its been really low (0.5%) which has meant the monthly interest they add on has been consistantly lower than it would have been had the country not been in the mess it is/was in. So much so that the 138 monthly repayments originally scheduled (11.5 years) is no longer the scheduled repayments period as my balance at the moment means I will have paid it off by middle of next year. Originally it was scheduled from first payment on 1 november 04 to last payment on 1st march 16. Rough calculation works out paying almost a grand less than was calculated at beginning of the agreement

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Ok so interest is charged at 6.5500% above base rate (which from paperwork ive found has been at 0.5% since march 09. so been charged at 7.0500%

 

at the start of the agreement i was being charged 11.9%

 

First month i paid £140 but had £102 interest added on later in that month meaning i was only really paying £38 off of the £10,770 i borrowed!!

 

Thankfully the monthly interest im paying now is £8 and is going down every month

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On these loans, you pay the interest first and then the loan - they are pretty much like mortgages.

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