Secured loan - will it work?

MrGrinch

Hi,

I currently have approximately £7,000 of un-secured debt with credit cards, overdrafts, payday loans etc, and I really would like to get a loan to consolidate.

I have had no luck applying for an un-secured personal loan, as my credit rating is so bad, (credit score approximately 300). I was wondering if a secured loan would be accepted instead.

I live in a one bed shared ownership property, of which 25% I have purchased for £34,500. My outstanding mortgage is around £26,000, therefore showing equity of around £8,500. Considering my appalling credit rating, does anyone know the chances that I will successfully get a secured loan for around £7,000 against this equity?

I can easily keep up with these repayments due to a payrise at work. It is so frustrating because I have a decent income, but my credit file always lets me down.

Any advice greatly appreciated.

Many thanks,

MrG

Tixy

Very little chance at all, because of the limited amount of equity, and the fact that its shared ownership and if you have issues with your credit file. And because of the amout involved - the costs on a secured loan would be too high to make it viable for as little as £7k.

Can you afford your repayments on your current commitments? - if so then I would work out a snowball calculator and work out the best way to pay down your current debts and how long it will take you to clear them. http://www.whatsthecost.co.uk/snowball.aspx
If you can't afford repayments as they are then I would suggest posting up a statement of affairs for some ideas and contacting one of the debt advice charities.