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  • FIRST POST
    • Vicande
    • By Vicande 6th Jan 18, 9:56 AM
    • 12Posts
    • 0Thanks
    Vicande
    Debt solution?
    • #1
    • 6th Jan 18, 9:56 AM
    Debt solution? 6th Jan 18 at 9:56 AM
    Hi all, I am struggling to find a solution to my problem with 2 loans so want to know if you have any ideas.
    My family went through a difficult 4-6 year period in which I basically sustained them all. My parents lost their house so donít have that now as a back up. My salary wasnít just enough for all of us and I think I got into too many stuff. Things are now ok but want to move forward and see how I can pay less monthly.
    I have 2 outstanding loans one I owe £ 15000 and the other around £25000. Between the 2 comes up to monthly payments near £1000. I have been managing this for over a year but would really want to reduce it.
    My salary is £43000 per year and was thinking in searching for a loan to cover both and the. Have only 1 monthly payment, I can easily afford a £600 monthly fee. I have no other debts, never missed payment or nothing like i. Not a home owner, rent with my partner.

    Any ideas would be appreciated,
    Thanks!!!!
Page 2
    • Vicande
    • By Vicande 7th Jan 18, 11:46 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    The rat for the one in UK is 11% the other I don’t know.
    Bankruptcy just sounds really scary when reading about freezing your account, that they will only realease money for my house and my goods for living, it seems I will be worse than now. Now I struggle but at least I pay and have my money for my things.
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 11:50 AM
    • 5,146 Posts
    • 9,788 Thanks
    enthusiasticsaver
    What are the interest rates and terms of the loan? Have you tried contacting the lenders to extend the term to make it more affordable?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 11:52 AM
    • 5,146 Posts
    • 9,788 Thanks
    enthusiasticsaver
    11% is not great but the debt is unsecured so not the worst. I doubt any new loan would come in at a better rate. Your best bet is either to increase your income by taking on a second job, reduce outgoings or restructure the loans over a longer repayment period.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • -taff
    • By -taff 7th Jan 18, 12:10 PM
    • 7,314 Posts
    • 5,368 Thanks
    -taff
    It would be possible for you to get another loan, potentially, to cover what you owe at the moment.
    The trouble is, you are borrowing more money to pay off money you already owe.
    That may make perfect sense to you at the moment, but the trouble with that is, you have no idea what the future will bring. You could lose your job, you could have to help your parents again, you may have an emergency etc, so you're gambling on borrowing more money that you will always be able to repay it. As far as consolidation loans go, that usually means you're in a worse position a few years down the line.

    If you can absolutely gurantee that these loans are your only debt, and will be your only debt [ so no new cars, no buying a house, no credit card debt etc] then getting a larger loan would be fine for you.

    But you should understand that you won't be paying back less, all you'd be doing is extending the period that you owe this money for, and probably end up paying more back.

    You already owe more than half of your wages on the UK loan, so if you did apply for another loan, they would take that into consideration and the rate you want to borrow at won't happen, you'll have a much higher rate.

    There's no way of avoiding paying this, and not much chance of a single loan to cover both outstanding loans because you just owe too much compared to what you earn.

    Your options are basically, carry on paying them off, or throw more money at them to pay them off sooner, or go down a DMP/bankruptcy road.
    • Vicande
    • By Vicande 7th Jan 18, 12:17 PM
    • 12 Posts
    • 0 Thanks
    Vicande
    UK loan rate is 11% and the other si am not sure.
    Bankruptcy just sound scary about freezing my account, releasing money only for my rent and goods, it looks like I wonít have control at all and wonít have any kind of Liberty. Affecting with my employment, just sounds scary and with too many side effects.
    As I am now I struggle but get payments done, will take me 4 years and 5 months to clear all the debts. Maybe I am trying to change a situation and maybe as I am now may be my best option?
    Donít know, what you think?
    • Vicande
    • By Vicande 7th Jan 18, 12:18 PM
    • 12 Posts
    • 0 Thanks
    Vicande
    BTW..... thank you all for you input and ideas, really lost in this kind of matters as you can see. Anything medical I am your person, but finance..... clearly not.
    • ViolaLass
    • By ViolaLass 7th Jan 18, 12:43 PM
    • 5,210 Posts
    • 7,224 Thanks
    ViolaLass
    I would go onto the debt reduction part of this forum and post an SOA (statement of affairs i.e. where every penny goes each month) and see what we could do to help you reduce your costs and therefore throw more money at the debt.
    • Vicande
    • By Vicande 7th Jan 18, 5:18 PM
    • 12 Posts
    • 0 Thanks
    Vicande
    I have downloaded a spread sheet from the step change website. Is a budget form to check where my money is going and where can I safe more. All the reading I have been doing regarding bankruptcy and all other options it looks like as long I can afford the debts, even if a struggle to safe, is the best option and I will get rid of the first loan in 2 years and 6 months, which will let me breathe a bit.
    Bankruptcy option is just to scary and extreme for me I think.
    • -taff
    • By -taff 7th Jan 18, 6:36 PM
    • 7,314 Posts
    • 5,368 Thanks
    -taff
    Go to the debtfree wannabe section and post up an SOA, they will help you where to cut spending and send more money towards the debt.

    Fil this in, format for MSE and post on the debt free board
    http://www.stoozing.com/calculator/soa.php
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