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    • rich81
    • By rich81 20th Mar 17, 9:51 AM
    • 15Posts
    • 15Thanks
    rich81
    Anyone had any experience with secured loans???
    • #1
    • 20th Mar 17, 9:51 AM
    Anyone had any experience with secured loans??? 20th Mar 17 at 9:51 AM
    Hi

    Has anyone had any experience with secured loans for consolidating unsecured debts? Are they always a bad idea or can they work?? Also, is the interest front loaded on credit report, or does it look like a mortgage which just shows the balance without the interest.
Page 1
    • Money Rollercoaster
    • By Money Rollercoaster 20th Mar 17, 10:40 AM
    • 238 Posts
    • 549 Thanks
    Money Rollercoaster
    • #2
    • 20th Mar 17, 10:40 AM
    • #2
    • 20th Mar 17, 10:40 AM
    Generally, turning an unsecured debt into a secured one isn't a good thing. Yes, it looks like a good deal sometimes, as your repayments are lower, but over time you often pay a great deal more interest and of course if you default or fall into arrears, the stakes are a lot higher with the security of your property involved.


    Why not post a bit more information about your situation, your debt / income levels I'm sure there will be other options that will come out of that.


    Often, a good first step is to complete one of these ...


    http://www.stoozing.com/calculator/soa.php
    Living Life @ 174 BPM >> CC Balance (0%) -1,950 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -20,264.29 - Target DFD Oct 2020
    • sourcrates
    • By sourcrates 20th Mar 17, 11:17 AM
    • 10,272 Posts
    • 10,011 Thanks
    sourcrates
    • #3
    • 20th Mar 17, 11:17 AM
    • #3
    • 20th Mar 17, 11:17 AM
    its usually a terrible idea.

    Interest rates are often variable, so can change at the whim of the lender.

    Also you take these loans over a long period of time, ten or twenty years is not uncommon, you cannot predict what will happen during that time, plus the interest you repay over that timescale is phenomenal.

    If your struggling with your repayments now, much, much better to speak to your lenders about stopping or reducing the interest you pay, borrowing more money is not the answer.
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    • another casualty
    • By another casualty 20th Mar 17, 11:56 AM
    • 2,173 Posts
    • 3,271 Thanks
    another casualty
    • #4
    • 20th Mar 17, 11:56 AM
    • #4
    • 20th Mar 17, 11:56 AM
    I had a homeowner loan with white label , a subsidiary of West Bromwich building society.
    To me they seemed a bit shady . I was paying around 200 p m , yet it didn't seem to help,1,iota.
    The loan was for 20,000 . In 7 years, the balance remaining was 14,000 approx .
    Because it is a secured loan on your property , it is a second mortgage . Sounds painful when it is said that way .
    So, that meant my 525.00 pm mortgage was increased to 725.00
    Pm approx .
    Add to that, all my other bills and I could hardly breathe .

    So , for me consolidation does not work .
    • Grazeley
    • By Grazeley 21st Mar 17, 12:40 PM
    • 12 Posts
    • 4 Thanks
    Grazeley
    • #5
    • 21st Mar 17, 12:40 PM
    • #5
    • 21st Mar 17, 12:40 PM
    We did this in October with 30k and seriously regret it. one of my cc was 0% interest and now its on the secured loan at 16%, my mthly payments didnt decrease and now my house is at risk.
    • enthusiasticsaver
    • By enthusiasticsaver 21st Mar 17, 1:58 PM
    • 3,200 Posts
    • 5,297 Thanks
    enthusiasticsaver
    • #6
    • 21st Mar 17, 1:58 PM
    • #6
    • 21st Mar 17, 1:58 PM
    They are always a bad idea. Usually ends up more expensive due to length of time you pay it back over, delays you dealing sensibly with overspending as people think consolidating means getting rid of debt (it doesn't - it just moves it and often credit cards end up building up again meaning the figure escalates) and puts your home at risk.
    Debt and mortgage free and saving for early retirement
    • January2015
    • By January2015 21st Mar 17, 2:36 PM
    • 1,602 Posts
    • 4,471 Thanks
    January2015
    • #7
    • 21st Mar 17, 2:36 PM
    • #7
    • 21st Mar 17, 2:36 PM
    I consolidated unsecured debt into a secured loan in 2011. Worst thing I ever did. We ran up more unsecured credit because we thought we could afford it. If only I had realised there were solutions to deal with debt other than converting to a secured loan. It took me another four years until January 2015 to realise things like DMPs exist to support people in debt deal with the problem, rather than shuffling it onto a secured loan and incurring thousands more in interest payments.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k DMP now 26.58% paid. That means our debt is in the 60k's
    1k emergency fund (member #84) 1k/1k
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