Unsecured loan for £25k?

RobertoMoir

Idiophreak wrote: »

Even for a debt consolidation loan?? Doesn't that rather defeat the point?

No such thing as a "debt consolidation loan". You can get a loan and use it to consolidate your debts but there is no way to guarantee that is what will happen and in fact you don't have to look far on these forums to find plenty of cases where people get a consolidation loan in good faith then have a brain fart and run up their credit cards, etc again on top of the loan.

Therefore any sane lender who hasn't consumed the entire contents of a case of brandy before starting work that morning will tend to consider the risk as the new debt plus the current one.

imalrightjack

When I say 'foolish', I refer to the act of getting into debt! It has, for the most part, been for many good reasons.

My household income is around £42k. My Experian rating is 999.

"Ignoring the foolishly racked up debt bit, even if a lender did borrow you £25,000 and you paid back the £20,000 with it, you still would have a debt of around £30,000. Surely you must see that that is a huge amount unsecured." Not sure how that calculates - surely the debt is £25k!?

How about secured loans then? Any more likely? A bad idea?

The amount I am currently paying back is less than the amount I would pay on a loan.

RobertoMoir

Arguably £25k unsecured is a huge amount of debt however you slice it - more than 50% of your salary for a start... And see my post and a few others along the same lines for how the risk would be calculated.

As for a secured loan - well just keep in mind what that will mean if things go pear shaped for you.

fozmcfc

imalrightjack wrote: »

When I say 'foolish', I refer to the act of getting into debt! It has, for the most part, been for many good reasons.

My household income is around £42k. My Experian rating is 999.

"Ignoring the foolishly racked up debt bit, even if a lender did borrow you £25,000 and you paid back the £20,000 with it, you still would have a debt of around £30,000. Surely you must see that that is a huge amount unsecured." Not sure how that calculates - surely the debt is £25k!?

How about secured loans then? Any more likely? A bad idea?

The amount I am currently paying back is less than the amount I would pay on a loan.

My calculation was on a £25,000 loan + the interest, I assume you actually mean take a £20,000 loan and with the interest it would be £25,000

I think you would stand a better chance secured, but as others have said that can be risky if things go wrong, work wise.

imalrightjack

So, it's unlikely I'll get a £25k unsecured loan, right?

Work-wise, if I were to be made redundant, I'd likely get around £30k plus, due to service at work. That would, of course, make it easier to manage.

What difference does it make with a credit card, should you default? Does that not similarly put you in a position where your possessions are at risk? Forgive my ignorance.

AMILLIONDOLLARS

imalrightjack wrote: »

So, it's unlikely I'll get a £25k unsecured loan, right?

Work-wise, if I were to be made redundant, I'd likely get around £30k plus, due to service at work. That would, of course, make it easier to manage.

What difference does it make with a credit card, should you default? Does that not similarly put you in a position where your possessions are at risk? Forgive my ignorance.

That's a huge assumption to make, I've known people with 29+ years of service get the bare minimum, when it comes to redundancies, we are living in different times now, employers are no longer free with their money when letting someone go!

When you default on a secured loan , you lose your house not the possessions in it. Furthermore, you're forgetting the interest that will have been applied to the loan, so in all likelihood, £30k in supposed redundancy payment may not cover the final settlement figure.

AMD

imalrightjack

Does anybody have any other suggestions on the best way to proceed?

Tixy

imalrightjack wrote: »

Does anybody have any other suggestions on the best way to proceed?

It sounds like you won't get a new unsecured loan, and personally I think a secured loan is a bad idea.

So my suggestion would be to increase your repayments to your existing debts to concentrate on lowering your debts (ideally pay as much as you can afford off the debts each month but certainly up to the level that you would have been happy to pay on a new loan).

Once your debts are a much smaller proportion of your income then you will stand more chance of being able to transfer the debts around to cheaper interest rates.

Hugh_Jass

Some providers offer £25k unsecured loans:

Sainsburys @ 8.7%, AA @ 9.9%, Nationwide @ 9.9% and HBOS 10.9%. Both Nationwide & HBOS only offer to existing customers though.

Good luck though - as I applied for a Sainsburys loan a while ago and the most they would lend me was £13k (only wanted to borrow £7k).

Hugh_Jass

Forgot First Direct @ 8.9%!