HSBC Kawasaki Card Nightmare

[ILBrian]

dont just talk to one bank and is there a lein already on this bike? Talk to many banks see if any can do cash out refinancing

[tcbofade]

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@rootpooty wrote:

im really sorry to hear what has happened. we all make mistakes and we all learn from them. well most of us do. please just sit down with your husband and come up with a plan that you both agree on to get this loan paid for. how much do you owe till you pay it off?  if you stop paying on it now it will haunt you down the road

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If necessary, sit down with your husband and a 2x4 and figure out what you're going to do.

A "debt consolidation loan" is NOT a bad thing, and may be just the answer.  Have you talked to your bank or CU about this recently?

I agree with the others..."walking away" is NOT the answer, and it will haunt you both for a LONG time...

[Kennie02]

As of my last statement we owe $5845. I hate looking at this number. Its so high and more than the stupid bike is worth. I am not sure if their is a lein on the bike. Technically HSBC (or CapOne) still own it because it hasn't been paid off. From speaking to a rep they won't really repo it and just continue to come after you for the money. I tried to get a consolidation loan through my CU but was denied because my husband's salary is the only income we have. As you can see from my sig my CS is not that high and so I am afraid I will continue to get denied. 

[Kennie02]

ILBrian what is cash out refinancing? 

[Anonymous]

Sure go to the credit union and get a refi with it through them.  Odds are there APR will be much lower than the HSBC card!  Or if you have a card that you can do a 12 month 0% apr on then maybe that is a better option just keep in mind that most cards with that kind of promo APR will charge you a one time transfer fee usually around 4% unless is't NFCU then they have a 18 month zero percent promo and zero percent transfer fee or zero transfer fee!  They rock!!!  I actually did the same thing a while back with my Suzuki HSBC account best thing I ever did!!

[Watchmann]

I have a Yamaha account through HSBC (now Cap One) and it probably operates the same as your Kawasaki card, the account is set up like a revolving credit card account and they usually have a low APR (2 or 4%) for about 3 years when you purchase a new bike.  You have to treat these accounts like a vehicle loan and have a set monthly payment in your budget, and then set it up online for it to draft the correct amount out each month so you pay it back within the low interest period.  When you do that they are a perfectly fine way to finance a bike......cheap and easy.  I've done two Yamahas this way with no issues, and I pay it back in about two years.  Unfortunately many bike buyers and young and inexperienced so they buy the bike, wreck it, and then try to walk away, or they run out of months on the cheap APR and then get whacked with a 29% APR rate and they are paying $200 a month on it.

You are all fouled up if you still have a $5,845 balance after five years......you really don't have many options here.  HSBC holds the title to the bike and they will continue to come after you if you stop payment.....they do NOT want the bike back, they just want their money.  You are not likely to get a vehicle refinance loan since the existing loan is not a vehicle loan, it is a credit card loan.  I would not stop payment unless you are looking for a serious ding on your credit.  What's the Kaw worth?  Take it to the dealer and see what he will buy it back for and he'll do all the paperwork.  It's probably not worth what you owe on it but it may reduce a chunk of the remaining balance which then you can work to pay off ASAP.  It still has value even it is is damaged or not working.  Get rid of the bike as the first step in getting out of this hole.

[ILBrian]

For example, I have a car that has a clear title (not sure of the bikes title status from the messages) I can go to a CU/bank and ask for cash out on the car. This in essence is "refinancing". I actually did this recently to consolidate some debt into a nice 3% interest rate. They typically give you 100/125% of the value

[Repo-ed]

Outside looking in, and having been in your situation before, you either need to get a job (part-time or full) or your DH needs to get a 2nd job and help get this thing knocked out.

Stop paying on it, and you'll have FAR more than a 5900$ headache.  Believe that...

[lithium78]

How is your credit?  Could you qualify for a new CC with a 0% interest rate for 12 months or more?  That might help you get the payments under control if you can't refinance from a CC.

[crunching_numbers]

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@lithium78 wrote:

How is your credit?  Could you qualify for a new CC with a 0% interest rate for 12 months or more?  That might help you get the payments under control if you can't refinance from a CC.

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+1

This would get that debt gone and transfered to a different creditor with 12 to 18 months of no interest to make headway getting the debt down, and hopefully better terms at the end of the promo period if you can't get the debt gone by then.  This is one of those rock and a hard place times in life where you just have to get out of the situation so you can move forward.