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Secured loan query
FetishJess
Posts: 1 Newbie
I got myself into a desperate situation a few years ago and took out a secured loan at a horrific 13.4%. I was self employed at the time and it was the only way I could see to get out of my debt. Since then, my business has folded and I had a nervous breakdown.
I went onto DLA and Income Support in 2008. The secured loan company accepted my circumstances and agreed to reduce my payment from £400 a month to £100 and freeze the interest. That has been running for a year. I got a phone call today to say that can't carry on anymore and they have to charge me interest again but I can carry on making my reduced payment. It will still show up as an arrears balance and the £100 won't even cover the interest being charged every month.
My flat is in negative equity and I had to move back to my Mum's house due to my severe mental illness so I have two friends in it at the moment. I have no idea what to do. The loan is already more than it was when I took it out (now £32k against a loan sum of £29k) and it will never go down. I have looked into mis-selling but can't find any information on secured loans.
I was mentally ill when the loan was taken out (in 2006) and to get the money quicker, it was an unregulated loan but I have no idea what that means. Can anyone offer me any advice please?
I went onto DLA and Income Support in 2008. The secured loan company accepted my circumstances and agreed to reduce my payment from £400 a month to £100 and freeze the interest. That has been running for a year. I got a phone call today to say that can't carry on anymore and they have to charge me interest again but I can carry on making my reduced payment. It will still show up as an arrears balance and the £100 won't even cover the interest being charged every month.
My flat is in negative equity and I had to move back to my Mum's house due to my severe mental illness so I have two friends in it at the moment. I have no idea what to do. The loan is already more than it was when I took it out (now £32k against a loan sum of £29k) and it will never go down. I have looked into mis-selling but can't find any information on secured loans.
I was mentally ill when the loan was taken out (in 2006) and to get the money quicker, it was an unregulated loan but I have no idea what that means. Can anyone offer me any advice please?
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