Fed up with debts

michella_2

I know its all my fault, but I still believe I deserve a break.

After several months of struggle, I was able to get four major credit card companies to freeze all interest and put me on an agreed monthly payment two years ago. I have never used a credit card ever since.

Question
Do you think it would be possible to do the same to a large loan secured on my house. That is: get them to stop interest and let me pay the principal amount over 7-8 years, instead of the originally intended, murderous 25 years?

bottleofred

Hi Michella and welcome to the forum,

I doubt very much if you will get the interest frozen on a secured loan. If you defaulted on the loan, then the loan company would be able to place a charge on your property (at the very least) for the outstanding debt, so I'd think you'll have to pay the full amount.

antrobus

bottleofred wrote: »

Hi Michella and welcome to the forum,

I doubt very much if you will get the interest frozen on a secured loan. If you defaulted on the loan, then the loan company would be able to place a charge on your property (at the very least) for the outstanding debt, so I'd think you'll have to pay the full amount.

Agreed, except that, of course, the loan company would have no need to place a charge on the property since it already has one in place.

michella_2

Thank you very much for the welcome.

I think they already have a charge on the house, as we need to inform them of any changes, and cannot sell house without their "approval".

What exactly happens if I write a letter, asking them to freeze interest and make another arrangement, so that they get their money in half the time, otherwise I cancel my direct debits and pay them a monthly standing order of half usual amount (or £20 per month to be vicious), until they listen to me. Like I did to my credit cards.

Or would that be suicidal or can they could they give me a financial "spanking". I feel like going to financial war, but don't want to become a casualty.