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Can I get a secured loan with poor credit?

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  • rhcp
    rhcp Posts: 2,037 Forumite
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    jools02 wrote: »
    No I haven't. I didn't really want to increase the mortgage any more, I don't like the idea of paying the £18k off over the next 25 years, I was hoping to do it in more like 3 years.

    If you can afford to pay £18k off in 3 years, why not just do that, surely there isn't a need for a new loan.
  • mi33cupc@ke
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    rhcp wrote: »
    If you can afford to pay £18k off in 3 years, why not just do that, surely there isn't a need for a new loan.

    Because we worked out a snowballing plan and it would take 3 years to pay off the 18k if we throw every single last penny we had at the debt. However if we had an £18k loan even at 25% we would still be able to pay off the debt in 3 years but we would have enough after the monthly payment to live a bit more comfortably each month. It would take so much of the pressure off.
  • jon_boy75
    jon_boy75 Posts: 364 Forumite
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    edited 14 September 2010 at 9:45AM
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    jools02 wrote: »
    Because we worked out a snowballing plan and it would take 3 years to pay off the 18k if we throw every single last penny we had at the debt. However if we had an £18k loan even at 25% we would still be able to pay off the debt in 3 years but we would have enough after the monthly payment to live a bit more comfortably each month. It would take so much of the pressure off.

    to answer your question on unsecured, some lenders with more flexible lending criteria include Creation and Black Horse. Nationwide can do a quotation search, but this doesnt guarantee final acceptance. Also, you can get quotation searches from Experian, Moneyextra, Moneysupermarket and others.

    What's the exact nature of the bad credit you have? The details of that could change the advice you get on here
  • AMILLIONDOLLARS
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    jools02 wrote: »
    Because we worked out a snowballing plan and it would take 3 years to pay off the 18k if we throw every single last penny we had at the debt. However if we had an £18k loan even at 25% we would still be able to pay off the debt in 3 years but we would have enough after the monthly payment to live a bit more comfortably each month. It would take so much of the pressure off.


    Do you have children? if not, were you planning to have some? This is an event that could seriously put a dent in any long term plans. As already stated no one knows what the future holds.

    Secondly, no lender is going to offer you a secured loan on a 3 year basis, no money in it.

    Thirdly, if you do manage to get one, the period could be between 10 - 15 years at a variable rate, meaning the interest could be increased at the lender's discretion. There are fixed rate options, so I would suggest that you look into these first.

    Lastly if you were going to borrow this money to pay off existing loans. Then you would have to cut up all your credit cards and live without them for the period this loan was in place. Would you both be strong enough to do this?

    If I were you, I would look seriously into snowballing as a first option and cut cards up now.

    AMD
    Debt Free!!!
  • euronorris
    euronorris Posts: 12,247 Forumite
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    I agree with the other posters.

    You could snowball, but still ease up on repayments a little on months when you need to. If you're really struggling to meet the minimum repayments each month, can you take a payment break on a loan (if you have one included in your unsecured debt), or even on the mortgage? That would allow you to pay a chunk off of a CC, get a kick start at repaying the debt, and reduce the monthly minimums so you can start to make a dent in the overall debt figure.

    Also, get Ebaying all that old junk in your house to make extra money. Can you or your OH take on extra jobs part time? Bar work, shop work etc, anything to bring in extra pennies.

    And remember, you don't have to pay it all off in a 3 year period! You can do it at a pace that is comfortable to you, and retain some flexibility in your finances for the unexpected. Trust me, with a secured loan, you won't have that, and should you lose your jobs, the pressure you're afraid of will still be there and much, much worse!

    Turning your unsecured debt into secured debt is such a bad idea. Please, please, don't just consider the other options, actually try them all first. Set yourself some mini targets to keep yourselves going, join some challenges on the boards here to stay motivated etc etc. You'll get there.
    February wins: Theatre tickets
  • euronorris
    euronorris Posts: 12,247 Forumite
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    Oh, also, there is the trap of consolidating all your unsecured debt and then running up the CC's and overdrafts again etc. How would you cope then?

    Trust me, I know you may feel you won't do that. I thought I wouldn't.....3 times! Paying it off the hard way, is the only way, IMO. But, if you look at my sig, you'll see I've managed to clear over 6k already! If I can do it, so can you!
    February wins: Theatre tickets
  • rhcp
    rhcp Posts: 2,037 Forumite
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    jools02 wrote: »
    However if we had an £18k loan even at 25% we would still be able to pay off the debt in 3 years but we would have enough after the monthly payment to live a bit more comfortably each month. It would take so much of the pressure off.

    That would suggest that the interest rates you a paying currently are quite high. What interest rates are you paying?

    Personally, I would prefer the flexibility of repaying as much as I can with a credit card as opposed to a loan (especially a secured one) because the payments are more variable and if you have a particularly bad month and can only afford a lesser amount, it doesn't itself create greater problems. Nobody knows what tomorrow will bring.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    edited 14 September 2010 at 1:52PM
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    Well, you're not going to thank me for this, and you haven't thanked anyone else on this thread for their efforts to help you, but the fact is you appear to be desperate because you can't get what you want on your own terms.
    WAKE UP !
    YOU NEED HELP

    I suggest you go to the MSE Debt Problems page and decide how you are going to get it.

    You'll forgive me one day.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • louisaj28
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    Why do you wanrta loan? Please, please look round the forums (both here and the DFW boards) and read what people say about consolidation loans. I can't, offhand, think of a single person who has had a positive experience with one.

    I took out a loan with Ocean Finance a few years ago for debt consolidation which was secured against my property along with my mortgage. I knew at the time I was going to be charged a higher than average rate from using one of these companies but because at that time my credit history was really bad, I accepted this fact.

    I have recently remortgaged my property through Natwest to include my previous mortgage and this secured loan which has now reduced my monthly payments by £250 so I am a lot better off.

    I guess what I'm trying to say is that, secured loans do have their uses. Obviously provided the borrower is responsible and makes all payments on time each month to ensure no heavy penalties are added to the loan.

    Saying that, I am now very delighted I don't have to give Ocean any more money!!
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