Secured Loan

jbell4

Can anyone give me any advice?
I've got a secured loan which I took out in 2006 for 12 years which has just over £25k left owing and costs me £396 per month. This is nearly £50 per month more than my mortgage and the problem I have is this.
I am finding it increasingly difficult to make ends meet and wondered if there was any was of dealing with this debt? I am already on a DMP for my credit card debts which has now given me a poor credit rating. Because of this I cant get a remortgage or even another loan to pay it off, thus freeing up nearly £400 per month which would really help out. (I still have more going out than I have coming in).
I am now thinking of selling my house and renting so that I can pay them back and not have this debt and worry anymore but it seems such a drastic move to make for sake of £25k. Can anyone think of an alternative solution? If I could solve the problem of the outstanding £25k I could keep my home and have enough to pay more towards my other debts via the DMP to get out of trouble. I even tried to extend the length of the loan - not ideal I know, but would have reduced monthly amount - but due to my age thhis wasnt possible.
It only needs the interest rates to start rising - which they inevitably will - and that'll be me finished. I know people warn against secured loans but at the time 6 years ago, I was in a different position and had no idea what was to come regarding recession. And to be fair, the loan company hasnt been menacing in any way - its just me realising I'm not going to make it to the end of the term after all. Any suggestions anyone?

Apples2

Your DMP should have analysed your needs and left you with enough to live on.

Did you go with CCC or Payplan, or are you paying a princely sum to a fee charging company?

Tixy

If your outgoings have increased and you can't meet the repayments on your priority outgoings then you need to go back to your DMP provider and redo a budget with them and reduce you monthly DMP payment.
The other alternative might be to pop over to the debt free wannave section of this forum and post up a statement of affairs - the posters there might be able to come up with ways to reduce your monthly expenditure, places you can save money / get things cheaper / try to cut down etc. Which might mean you coudll manage without reducing your DMP payment.

I'd suggest you talk to your DMP provider who knows all your financial details and can see if there are any other alternatives.

Regarding the possibility of selling your house, I think its very hard for anyone to advise without knowing the numbers involved. E.g. how much your property is worth, how much you owe on mortgage and the loan. Would you have enough equity to pay off your DMP debts? How long your DMP is forecast to last. How much less renting would cost compared to the mortgage and secured loan. How old you are, how close to retirement and what your plans would be post retirement if your house is sold etc etc

[Deleted User]

if your credit rating is shot then renting privately may not even be an option

immoral_angeluk

You may wish to seek some debt advice about whether a time order is appropriate in your case to vary the original agreement and reduce the payments/interests through court.