Poor financial advice...where do I stand?

Bendigo

Before I begin my rant, yes, my wife and I are rubbish at money. We used to spend too much but decided to sort it out.

We had a mortgage for £79k on a house, which was later valued, to be £130k.

We had a hell of a lot of debt so went to a company and got a secured loan of £36k.

Over a period of time we put stuff on cards and had store accounts and got in trouble again.

We decided to remortgage to our max and borrowed £49k to pay off our £16k cards, do up our kitchen etc etc.

In the meantime we had great news as we found out we'd be expecting our first baby.

We ended up with all cards paid off and £20k left. So we decided to by buy baby things we needed and put the remainder in the bank for when the baby arrives and my wife is on maternity leave for 6 months.

We met all our bills, paid mortgage and secured loan on time, and all was good...or so we thought.

The solicitor called to say she shouldn't have released the funds til the secured loan was paid off. Our financial advisor only mentioned paying off the secured loan as it was a high interest rate. He only mentioned it once and that was that.

Neither the new mortgage company, or the secured loan, wrote to us to complain, but according to our solicitor there wasn't enough equity in the house for them to happily be 2nd charge.

In the end we've had to blow the £18k savings and get a £18k loan to pay off the 2nd secured loan.

Now we have a high mortgage, a 2nd secured loan of £18k and no money for when my wife is off. She goes back in Jan.


I was annoyed with the financial advisor and he said put your debts on card til you go back to work. :mad:


If we had to pay off the secured loan we would have done, as we had £49k and the loan was £36. Leaving us with our cards but with £13k for when my wife is off.

As it stands the credit cards are mounting again and loan companies are declining our applications for unsecured loans due to us being with Bains & Ernst ages ago.


Please help !!!

AMILLIONDOLLARS

Let me get this right

You took out a secured loan for £36K to pay off credit cards, loans etc, you then ran up some more debts and decided to remortgage and borrowed a further £49K, now instead of paying off the secure loan leaving you with £13K you went on a spending spree, new kitchen and baby stuff and more debt. Now the solictor has informed you that the secured loan should have been paid off first before any release of funds but you haven't got the money!
Question, were you NEVER going to pay back the secured loan

Whether the FA did or did not mention paying off the secured loan, it was your ultimate responsibility to ensure that ALL your outstanding debts were paid before going on a spending spree, not sure what your rant is about, you can't go blaming anyone but yourselves.

Sound like your wife will have to go back to work sooner than she would like, but best hop over to DFW Board for some budget advise, forget trying to borrow any more money, looks like your maxed out credit wise, its now time to tighten your belts!!

Bendigo

We were happliy paying off our mortgage and the 2nd loan. We never missed a payment and both were kept happy.
We paid off all our cards and were going to improve our kitchen anyway, it needed doing believe me and we hardly went OTT with it.

If we had to repay off the £36k we would have done immediately, but we weren't advised to.
We were in the hands of our financial advisor and our solicitor, who we'd put our trust in.

Since then the solicitor has apologised and said she shouldn't have released the funds until the 2nd secured loan was paid off.

Looking back at it we should have paid off the 2nd loan but it was never mentioned as a 'must do' by anyone.

We wanted mortgage, 2nd loan, no cards or other debts and enough to cover my wife's maternity leave, plus the monthly payment of this extra £49k.

All bills met, everyone happy.

But no...

AMILLIONDOLLARS

Look on the bright side you've halved the secured loan comitment on your property. If I were you I would destroy credit cards immediately!!!

AMD

Bendigo

AMILLIONDOLLARS wrote:

Look on the bright side you've halved the secured loan comitment on your property. If I were you I would destroy credit cards immediately!!!

AMD

They've gone now.

I think you're right. No more loans and start afresh when she's back at work, treading water til then.

AMILLIONDOLLARS

Message must have crossed.

It not a matter of being advised to do something (this is not a nanny state!), its a matter of what your common sense tells you what's right to do. Every one of us is responsible for out debt commitments. Poor financial advise? I think not, its poor spending decisions more like!!

Over to DFW, looks like you have not had your lightbulb moment yet, lets hope you do.

AMD

Messages crossing again!!

Bendigo

AMILLIONDOLLARS wrote:

Message must have crossed.

It not a matter of being advised to do something (this is not a nanny state!), its a matter of what your common sense tells you what's right to do. Every one of us is responsible for out debt commitments. Poor financial advise? I think not, its poor spending decisions more like!!

Over to DFW, looks like you have not had your lightbulb moment yet, lets hope you do.

AMD

Messages crossing again!!

Who said I wasn't willing to pay off any debts? I was paying them off in accordance with the contracts we signed.

We're trying to get on top of things now. We've destroyed the cards and are trying to get money in from elsewhere (eBay, overtime etc)
Light bulb moment....leave the sarcasm out buddy !!

AMILLIONDOLLARS

I was not saying you were unwilling to pay off your debts!!

I was pointing out that it should have been YOUR FIRST consideration when you had the money to hand (£49K) to do so, that's why your FA commented that getring rid of the 36K would be a good idea because of the high interest.

You were complaining that you were NOT advised to do something, that should have been YOUR FIRST consideration and responsiblity to do - Buddy!!!!