Should i get a secured loan instead of dmp

lookingforthelight

Hi, I'm the new guy.

I have large unsecured debts and struggle to make the minimum payments. CCCS has suggested a DMP but I am worried about the long term credit file impact. I have equity in my house which I could use for a secured loan to clear the vast bulk of my unsecured loan & CCards. This would allow me to reduce monthly payments and overpay on the remaining c card.
I could then clear remaining unsecured debt over 2 years.

The cards I clear with the secured loan would be cut up and cancelled - I am very aware this is my last chance to get on the right track and MUST not borrow again.

Shall I do the secured loan route or DMP/similar route?

Tixy

Hi and welcome

Ultimately your choice
But do consider these
-What happens if you lose your job/ability to work? if you cannot pay the secured loan you could lose your house, if you cannot pay unsecured debts you can reduce your DMP payments.
-You won't be able to borrow all of your equity - are you sure that you have enough?
-What happens if you need to move and house prices have dropped?
-Have you ever consolidated before, how strong will you be in not running up debt again?

Generally people on here prefer a solution that keeps debts unsecured (such as a DMP)

RAS

Put both options into the snowball on www.whatsthecost.com.

Remember that if anything goes pear-shaped you will NOT get benefit support for any secured loan or second mortgage. And that if you fail to pay your home might be at risk, which would not happen with unsecured debt.