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hi hsbc are trying to get us to take out a managed loan . how is it different to a normal loan ?Does it affect credit rating or being able to get credit is it too high interest 7% above base rate

Anyone any suggestions

 

tHANKS

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hi italy -

i suggest you ask that question on the hsbc thread -

just press this newthread.gif and you will start a thread in the hsbc forum. i won't go into detail on the managed loan here in the welcome section - but will post again (if a dozen or so don't beat me to it).

we have managed loan information that will curl your toes and one particular thread that is almost unending -

my only suggestion at this point is - don't do it!!!!

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hi

 

have posted a thread re managed loans and was advised to post here hsbc are trying to get us to do a manged loan but how does it affect credit rating or chance of getting credit. any advice help

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Hi italy - i wouldn't touch it with a bargepole! Just my opinion of course but it was given to us by hsbc as a 'this is all we can do for you and we're doing YOU a big favour'!

We were desperate at the time and just trusted them. The interest rate is unbelievable (much much higher than a 'normal' loan) - so how they thought that would help i don't know!

I am currently querying the loan agreement and have cca'd them so i'm just awaiting their next move.

Don't think it does your credit rating much good either but not 100% sure.

Lisa x

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Managed loans are IMO one of the worst financial products that you can take out. Usually with a managed loan you are not allowed a credit card with that company nor an overdraft facility. Nor will you be allowed a switch card. The APR on the managed loan will also be considerably higher than on a normal loan.

Will it effect your credit rating? Definitely, but if you only qualify for a managed loan then you already have a poor credit rating. While you have the managed loan it is highly unlikely that you will be able to get any credit from anyone.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Hiya Italy and welcome to the HSBC forum :)

 

DO NOT TOUCH A MANAGED LOAN WITH YOUR WORST ENEMY'S BARGE POLE !!!! they are nothing less that financial slavery which you will never pay off and end up paying twice or three times what you owe now.

 

Some light reading of some of the horror stories...

 

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/15457-who-has-had-managed.html?highlight=managed+loan

 

If you look around you will find far cheaper ways out :)

 

pete

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see - i knew you'd get a response, italy. these people on this forum are the people who know hsbc and many, many of them have been touched by the managed loan disease.

it is a ml from hsbc which brought me to this site in the first place.

my son (18 at the time) was working away from home - unable to manage his monthly salary and started down the overdraft syndrome. they kept uping and uping his limit until he owed each months salary before it was paid. then they ever so politely encouraged him to take out a loan (never calling it a managed loan - but it was) "it will pay off your overdraft" "you can have a little extra for yourself", blah, blah, blah. well, unknown to us - he signed his financial life away to hsbc and proceeded to pay through the nose (the interest rate is way higher than a normal loan), took insurance for it without his understanding, upped the interest whenever it took their fancy and hey, presto - a couple of years down the line - he still owed what he owed in the beginning - in fact - more!!!

it is a never ending way of tieing you to them.

anything would be cheaper in the long run!!!!

 

 

if you take a look at that thread link that pete has mentioned - you will find story after story after story of people who have been right where you are now and have made a very grave error - that error is called a managed loan. if you still have doubts - put managed loan into the search engine on the blue strip at the top of this page and you'll be busy for a year reading all the sad tales - no one has yet to write about what a good idea a managed loan is and how it has helped them.

 

it's like they used to say about drugs - when it comes to a managed loan - JUST SAY NO!

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Hi italy , Welcome to the forum :)

That's excellent advice there from pete and latty and lisa.....if I can help by putting my two pennyworth in , this is my humble opinion :

 

I'd never advise anyone to let them ‘bestow’ one on you.

It happens when you are deeply overdrawn - charges every month, then they present it like the holy grail - they will loan you the money to pay off the overdraft - you'll be back in the black - hurrah! and maybe even a little extra to spend on whatever you want. it's a con! You will be paying for that little loan for a long, long time to come - and I mean years and years and years! the loan rate is way above the norm - like at least 10 points higher. They pay themselves the interest every month, month in and month out and very little off the principle of the loan.

 

There are probably hundreds on this forum who have struggled with managed loans. Try to keep your head above water and do what you can to clean up your finances , but under no circumstances fall for hsbc's managed loan - it is like indentured slavery! You will live to regret it.

This is also a helpful link:

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/162162-advice-managed-loan-please.html

 

Just come back and ask if you need help, someone will always answer , and we're a friendly lot on here ...... :-)

Edited by johnnymitch
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Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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3Threads merged.Please stick to one thread.

Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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well, i guess we told italy! probably scarred the poor guy into hibernation!

but italy - if you are still with us - we are all singing from the same hymn sheet - no managed loan!

 

i don't know your position but here are links to some very helpful info with some wise words - i hope it might help you Taking back control of your finances and How to get out of debt

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