Debt help for a newbie please

masatay

Hi,

I've been lurking for a while on the site but after receiving a letter this morning from our secured loan company telling us our payments are going up £8 a month :mad: (not a huge amount I know, but we are just managing to keep our heads above water as it is) I've decided to see if you guys can offer some advice?

We're in quite a lot of debt due to 2 bad business ventures and after getting pretty desperate last July took out a secured loan of £43K over 25 years, which was the only way we could afford the repayments, (we already have a personal loan of £25K and a fairly substantial mortgage, plus student loans. No credit card debts though thankfully.

I'm trying to figure out how we can re jig our finances in order to get rid of the secured loan by putting it on our mortgage (interest on mortgage is 5.79%, interest on secured loan is 10.9%)

We tried to do this at the beginning of the year with our bank, they looked at our income and expenditure and we were just over the threshold for expenditure for them to put it on the mortgage. Would it work to put the personal loan onto 0% credit cards?

If anybody has any advice etc then I would be grateful. :beer:

vivaladiva

Why not post an SOA and see if we can find you some extra cash to chuck at these loans. Check out your secured loan it might have a sneaky redemption penalty built in - ours would cost an extra £1500 if we pay it off now. Our APR isn't so high though so for you it might work out better in the long run. Pay off your most expensive debts first.