Secured or unsecured??

BIG_MIM

Hi all,

My friend is after a loan to consolidate all cards etc....

We share a mortgage and wondered if he could secure a loan against his half or just stick to a personal loan

Thanx in advance

Sace

Hi there.

I'd suggest reading my post in this forum (a couple down from your post) to see what can happen with secured loans... Just a suggestion

Robert_Sterling

Whilst you and he might consider that it was a loan against his half of the mortgage my guess is that you are BOTH jointly and severally liable for paying the mortgage.

Coupon-mad

Robert_Sterling wrote:

Whilst you and he might consider that it was a loan against his half of the mortgage my guess is that you are BOTH jointly and severally liable for paying the mortgage.

You are, and the loan company will be securing it against the whole property value. So I would stick with unsecured in this instance.

But has he already looked into transferring to 0% credit cards? That might be best short-term, or what about the M&S andMore credit card which I think has a low rate for life. HSBC has a long-term 0% offer till Spring 2008 for new customers too (just don't use cards that you've got a low BT rate on for purchases as well, keep the two things separate).

Search Martin's articles for info on the best CC rates.

HTH

tom188

Consolidating debt is not the answer. Almost everyone who does this will just run the debts up again and get deeper into trouble. I suggest your friend takes a close look at their spending and posts on the debt free wannabe section of this site.