Need some advice please in a bit of a mess!

helen01234

We currently have an unsecured loan with alliance and leicester and have about 14,000 to pay back. We then have 2 overdrafts one for 1250 and one for 1750. I am looking to consolidate all these into one loan.
I applied for an unscured loan with alliance and leicester again (asking to pay off the old loan with the new one) but it was declined. Not sure why as I have never missed a payment and they have always been on time.
They asked about a secured loan but Im unsure about a secured loan.

I want to take a loan for 19,000 does anyone have any ideas of anywhere reputable to try for one, or anything we should look at.

Are secured loans a bad idea?

I am unsure about loans and not sure what to do really, we really need to sort all this though and trying to pay the overdrafts off ourself just isnt working. Can anyone help?

Thankyou
Helen

regularsaver1

Could it have failed on an affordability assessment of theirs based on the timescale on unsecured loans?
they probabaly mentioned secured loans due to longer timescale

what term did you look at? - is the monthly payment stretching you?

helen01234

regularsaver1 wrote:

Could it have failed on an affordability assessment of theirs based on the timescale on unsecured loans?
they probabaly mentioned secured loans due to longer timescale

what term did you look at? - is the monthly payment stretching you?

This is what I dont understand with them, as the monthly payment was actually less than we are paying now.

I think I may try with a different company- is this a good idea?

Helen

Phoenix79_2

Don't turn an unsecured loan into a secured one!

raq

We have just taken out a secured line and are really pleased with the company. The apr was much lower and we are paying it over within 4 years. No other payments just one small amount each month. Don't think it was affordability with us I think it was more the answer - equity is £80kin our property.

There are many many people on this sight with good and bad on the secured question, but it's really down to the invidiual at the end of the day.

good luck

mrcow

Where's the extra £2k going?

I think you need to take a serious look at what you are doing with your spending before you even consider signing up for refinancing.

Perhaps a trip over the Debt Free Wanabee board with an SOA would be a good start.

Start the new year the way you mean to go on!

mountainofdebt

Firstly can I recommend that you don't turn an unsecured debt into a secured one. If things go pear shaped then you run the risk of losing your home.

Secondly I wouldn't get another loan to consolidate your debts. Speaking as someone who has done this on more than one occasion and it has never helped me yet. Unless you have had - what we on the debt free wanabee board call a lightbulb moment - this is the best way I know of making a bad situation worse. When you are in a hole , don't ask for a shovel.

I managed to clear a £3000 overdraft by simply following this set of rules:

1. Work out how much you can afford to pay each month to clear the bank account.
2. Work out how much your DDs come to each month.
3. Then take your monthly income and withdraw the difference between your monthly income and the figure arrived at in (2). Do not use your account any more only the cash you've withdrawn.
4.Pay into the account a sum equivalment to (1) and what ever your bank charges for that month are

By doing this you will clear your overdrafts without the need for loans.

If you post a list of your outgoings (including all your debts with aprs, balances and limits)nand income on the debt free wanabee board, we'll be able to see if we can slash any of your outgoings so that the amount you can pay into the overdraft can be increased ths reducing it quicker.

With your loan can you make overpayments? The only reason I ask is that when your overdrafts are clear you can then throw the money you were throwing at the overdrafts at the loan to clear this quickly....alternatively if you can't then you can save the money and pay the loan off early once you have sufficient.

Come on over to the DFW board - we're a friendly bunch and won't bite - honest.