Secured loan against car?

BobbyRoode

Hey everyone, I'm not a newbie but I haven't used this website for a while and couldn't remember my username/password combo so created a new one instead.

I have a good credit score of 999 according to Experian and I've been trying to get a personal loan for £9,000, which combined with some savings will help me consolidate my existing debt of £11,000. I've tried the usual avenues and even Zopa but so far to no avail.

I spoke to Black Horse who said I'd eligable for a secured loan with security against my house. Whilst I'm confident I'd repay the loan in full I am quite rightly reluctant to secure it against my house considering it's a relatively small amount in comparison to the value of the property.

Is there any loan companies that offer security against other posessions, specifically against my car? I have heard about Log Book Loans (not all good) and wondered if anyone could point me in the right direct or suggest an alternative way of consolidating my debt.

Thanks in advance,
Bobby.

Rafter

Bobby,

Consolidating debt is really difficult since the credit crunch and because a lot of people who do consolidate end up in more debt.

There must be something about your income, profession, use of existing credit cards etc that is putting lenders off. Your credit score only really says whether you are good at paying your existing debt. Experian don't know your salary, what you do etc, when you last changed jobs so can't be used as a guide as to whether you will get more borrowing - each bank will have its own criteria and scorecard.

You are right to be cautious about securing debt - never generally a good idea.

I think you need to tackle your debt in sections. Wait til your existing applications have cleared (3 months?) then apply for say a £5k loan or 0% credit cards with decent transfer offers.

Get hold of Martins book. Start snowballing (use your current savings to pay off your most expensive debt) and once that is paid off plough more into the next debt etc.

I know one simple monthly payment would be easier - but it seems that isn't going to be an option. As long as you are organised (and I'm guessing you are with a 999 score) you should be able to manage fine, and it will be a lot cheaper than a secured or logbook loan which often come with horendous fees and setup charges.

Good luck

R.

BobbyRoode

Thanks Rafter, some great advice there. My debts are spread on 3 credit cards. All are manageable except the outrageous 24.9% that MBNA are charging (something I will be speaking to them about tonight!)

I do like the idea of a smaller loan in order to clear my MBNA debt first. Get that sorted then focus on the next one. I shall be very glad when the credit crunch ends! I can't imagine lending ever being the same as it was a few years ago.

chambta

If you have a reasonable credit rating you should have no reason to secure the debt against anything. Why secure it when you may not need to?

Eric_Pisch

under the current situation consolidating debt is just a dirty word, they just assume now that you cant manage your money, alarm bells go of everywhere and they dont want to know you.

the whole system is screwed at the moment, getting credit is very hard, applying for lots of credit also trashes your rating

I would focus on the MBNA card and try to clear it off, theres certainly not much point having money in the bank when your paying 25% apr :mad:

I certainly wouldn't secure the debt, squirrel mode until at least the MBNA card is cleared, you may get lucky and get offered a 0% deal on the MBNA card when you have cleared it.