Secured Loans: cheapest lending of last resort

dairec

Can anyone give me some advice please

I took a secured loan over 72 months and in this time have taken three payment breaks. Each time I was asked if I wanted to increase my monthly payment or add to the end of the loan. On the previous two payment breaks I opted to add on to the end of my loan and am shocked to discover these two months have increased my overall term by 9 months meaning I have to pay back an extra £2500

How/Can I dispute this or do I now just need to pay it.

Thanks for anyone's help

AMILLIONDOLLARS

dairec wrote: »

Can anyone give me some advice please

I took a secured loan over 72 months and in this time have taken three payment breaks. Each time I was asked if I wanted to increase my monthly payment or add to the end of the loan. On the previous two payment breaks I opted to add on to the end of my loan and am shocked to discover these two months have increased my overall term by 9 months meaning I have to pay back an extra £2500

How/Can I dispute this or do I now just need to pay it.

Thanks for anyone's help

How can you dispute this when you did not ask about the terms and conditions of taking the breaks? Take your contract to your local CAB and get them to have a look at it for you.

AMD

The_Hill

Apologies if I may have missed this in the main article, but is it possible to challenge the interest rate on a secured loasn rather like the credit card interest rate challenge?

epudding

Hi I have a secured loan with Welcome finance which i took out approx 3 years ago for £5000. I totally regret doing this but it was a last resort. I had some problems making a few payments but i am back on track now and am making payments every month. I still approx £10,000. Is there any ype of company i can go to so i can transfer this loan. It depresses me so much to know that they are charging me so much money on op of what i borrowed. How can they get away with this???

Rev

Looking for a bit of advice on my mothers behalf.

Having spend numerous hours in the CAB trying to sort her debt problems both they, and she have concluded the only option left to her is a secured loan. She was declined for an unsecured load, has no savings, and the minimum payments she is making on her cards etc are only covering interest so she's not actually paying any cash of the debts. I'm not in a position to help her out with these debts. And after going through every other option with the CAB it's a secured loan or nothing really.

So I'm hoping someone can answer a few questions for me.

1) Any companies that she should avoid at all costs?

2) Any companies she should absoultely check out, cheap interest rates etc?

3) The CAB suggested asking if the companies have some sort of insurance policy/premium she can add to the loan that will pay the debt should anything happen to her? Does anyone know if such a policy exists, and if so what companies offer it?

Any help and advice at all is greatly appreciated. Obviously I want to help her get back on track as easily as possible.

Rev

Rev wrote: »

Looking for a bit of advice on my mothers behalf.

Having spend numerous hours in the CAB trying to sort her debt problems both they, and she have concluded the only option left to her is a secured loan. She was declined for an unsecured load, has no savings, and the minimum payments she is making on her cards etc are only covering interest so she's not actually paying any cash of the debts. I'm not in a position to help her out with these debts. And after going through every other option with the CAB it's a secured loan or nothing really.

So I'm hoping someone can answer a few questions for me.

1) Any companies that she should avoid at all costs?

2) Any companies she should absoultely check out, cheap interest rates etc?

3) The CAB suggested asking if the companies have some sort of insurance policy/premium she can add to the loan that will pay the debt should anything happen to her? Does anyone know if such a policy exists, and if so what companies offer it?

Any help and advice at all is greatly appreciated. Obviously I want to help her get back on track as easily as possible.

Anyone got any advice for me?

Sorry to seem impatient but I really want to help her get this sorted asap.

cactushead

My parents recently moved house, paid off their mortgage and paid off some of their credit cards/loans but still currently owe about £36,000. I should say my mum is in her early 60’s and my dad has just turned 70 and they are both retired so their options are reduced.

The RBS (who they had the mortgage with) were “kind” enough to take away their overdraft facility and refuse to reinstate it when asked even though they have been with them for forty years and I believe never missed a payment.

This has resulted in managing payments each month stressful and difficult as sometimes payments are due before the covering money has gone into their account and there is a scramble to pay in extra cash to avoid charges and other complications.

My Aunt has recently used Ocean Finance and now my mum is seeing this as their best solution.

I should state that the paid off cards were closed and cut up and I would insure that the same happened if any loan were used to ease the monthly payments as I’m trying to help them be debt free and be wiser with their cash.

Currently the credit cards charge roughly £250 and the loans £150, £250, £250, £250 totalling £1150 a month. And of course the other payments such as power, council tax, etc comes to £500 along with the petrol and food costing a few hundred more which is just about manageable if they had an overdraft facility and help from me.

The first loan of £250 ends in 1 year, the next two loans of £150 and £250 about a year after that and the last in 3 years. As you can see if they can last 1-2 years things will be easily manageable but now it’s stress that they (and I) could do without.
I thought that a combination of credit cards and loan into one longer term and cheaper monthly loan would give them breathing space and they can still be paying off the other loans, making things even easier in a year.

They have talked about a mortgage rather than a loan but obviously if they went with Ocean Finance then is there any difference between their secured loan and a mortgage? I know my mum has said that if they actually had a mortgage then council tax and other benefits would be better for them.

So thank you in advance for reading this long post and any advice would be gratefully accepted.

AMILLIONDOLLARS

Here are few threads to be going on with, if you do a search for Ocean you'll come up with a lot more!!

https://forums.moneysavingexpert.com/discussion/1945441
https://forums.moneysavingexpert.com/discussion/1949743
https://forums.moneysavingexpert.com/discussion/1768857
https://forums.moneysavingexpert.com/discussion/1474433
https://forums.moneysavingexpert.com/discussion/1187619

AMD

eliza143

Can anyone give me advice?
I was finacially ill advised 3 years ago to take out a secured loan with Picture fianance. This loan is Variable but even though interest rates are really low they have never reduced my payments, please can sone one advise me what to do?

Thanks lesley

eliza143

Rev wrote: »

Anyone got any advice for me?

Sorry to seem impatient but I really want to help her get this sorted asap.

Hi whatever you do think very carefully before taking out any kind of loan with picture fianance