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  • FIRST POST
    • darlo1883
    • By darlo1883 4th Dec 17, 2:37 PM
    • 1Posts
    • 0Thanks
    darlo1883
    Help Needed
    • #1
    • 4th Dec 17, 2:37 PM
    Help Needed 4th Dec 17 at 2:37 PM
    i have a loan which i pay £258 per month a real drain on my finances. I'm looking to borrow more /remortgage to get the 10k i need to pay off loan and reduce my monthly outgoings by about £200 a month. Good idea?? Tried a few months ago and my current lender refused my application due to my wife having used a pay day lender once and paid straight off. should i try again or go elsewhere
Page 1
    • Caz3121
    • By Caz3121 4th Dec 17, 3:29 PM
    • 10,867 Posts
    • 7,094 Thanks
    Caz3121
    • #2
    • 4th Dec 17, 3:29 PM
    • #2
    • 4th Dec 17, 3:29 PM
    you would be turning unsecured borrowing into secured.....rarely a good idea
    how much more would you be paying back over time? "£258 x ? months" v's "£58? x ? months"
    Probably best to look over at the debt free boards for help with your current budget
    • Sarastro
    • By Sarastro 15th Dec 17, 10:34 PM
    • 367 Posts
    • 279 Thanks
    Sarastro
    • #3
    • 15th Dec 17, 10:34 PM
    • #3
    • 15th Dec 17, 10:34 PM
    No - bad idea. Really bad idea. Keep the debt unsecured.

    You might lower your monthly outgoings, but the total amount you will pay back in interest over the life of the mortgage will frighten you half to death. Do your sums.
    Debt 1/1/17 - Credit Cards £17,280.23; overdrafts £3,777.24
    Debt 12/12/17 - Credit Cards £3,580.65; overdrafts £0
    • Tarambor
    • By Tarambor 16th Dec 17, 5:08 PM
    • 1,761 Posts
    • 1,208 Thanks
    Tarambor
    • #4
    • 16th Dec 17, 5:08 PM
    • #4
    • 16th Dec 17, 5:08 PM
    £10,000 over 36 months at a decent 3.3% rate, repay £10,509.
    £10,000 over 36 months at a quite high 9.9%, repay £11,528.
    £10,000 put on a mortgage at 3% over 20 years, repay £13,261.
    • sourcrates
    • By sourcrates 16th Dec 17, 5:35 PM
    • 12,714 Posts
    • 12,055 Thanks
    sourcrates
    • #5
    • 16th Dec 17, 5:35 PM
    • #5
    • 16th Dec 17, 5:35 PM
    i have a loan which i pay £258 per month a real drain on my finances. I'm looking to borrow more /remortgage to get the 10k i need to pay off loan and reduce my monthly outgoings by about £200 a month. Good idea?? Tried a few months ago and my current lender refused my application due to my wife having used a pay day lender once and paid straight off. should i try again or go elsewhere
    Originally posted by darlo1883
    Oh where do you start with a question like this.

    Consolidation seems such an attractive option, just add it to the mortgage, and forget about it, trouble is, when you've done it once, you tend to find an excuse to do it again, another loan, or credit card, and so on.

    Then comes the reality of what you've done, and you find yourself on the brink of potential bankruptcy.

    It really is not a good idea for so many reasons.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Dobbibill
    • By Dobbibill 17th Dec 17, 1:44 AM
    • 2,548 Posts
    • 3,636 Thanks
    Dobbibill
    • #6
    • 17th Dec 17, 1:44 AM
    • #6
    • 17th Dec 17, 1:44 AM
    i have a loan which i pay £258 per month a real drain on my finances. I'm looking to borrow more /remortgage to get the 10k i need to pay off loan and reduce my monthly outgoings by about £200 a month. Good idea??
    Originally posted by darlo1883
    No - this is not a good idea.

    How long have you had the loan?
    How much was it when it started?
    What has changed since you could afford the loan (at the start) to now (when it's a drain on your finances)?
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • DCFC79
    • By DCFC79 17th Dec 17, 9:40 AM
    • 30,427 Posts
    • 19,236 Thanks
    DCFC79
    • #7
    • 17th Dec 17, 9:40 AM
    • #7
    • 17th Dec 17, 9:40 AM
    Look at your spending and cut back and stick to the plan.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 17th Dec 17, 10:26 AM
    • 5,060 Posts
    • 5,202 Thanks
    poppasmurf_bewdley
    • #8
    • 17th Dec 17, 10:26 AM
    • #8
    • 17th Dec 17, 10:26 AM
    No matter how many times it's tried, and no matter how it is covered up, disguised, or covered with snow during Christmas, borrowing extra money is no way to lower debt.

    If you cannot manage at the moment, they you need to lower your spending and outgoings to match your income. Do an SOA, get it up on here, and we will endeavour to help.
    "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery." Mr Wilkins Micawber in David Copperfield by Charles Dickens.
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