to secure loan or to struggle on??

cathyw87

Hi. I'm wondering whether it is worth getting a secured loan on my house (equity approx £90k but can't release equity as already tried). My debts include 3x overdrafts, credit cards and a loan totaling just under £20k. my repayments and fees total £600 per month but the loan and credit card will be paid off in 2 years if i continue with the payments i'm doing now. it's my overdrafts that are killing me as i can't see a way of settling them. i've looked at a secured loan for £20k and have a quote for £500 per month for 4 years. this would clear overdrafts and other debts but i'm uncomfortable with having a secure loan....is it as scary as i think it is??

Oneday77

Consolidation loans only paper over the cracks and can end up leaving you in a worse condition than now. You best bet into look at https://www.makesenseofcards.co.uk Use the snowball calculator to see the most efficient way of paying your current debts off. Then look at the SOA calculator and post it here. People will help with where to save money to pu to the debts.

Coming here Is the first big step and well done on making it. You will soon see common themes, save money, don't consolidate, snowball debts, increase your income and feel free to ask anything. Anyone who gets all judgemental isn't welcome here so you will only get help and not criticism.

Tixy

As oneday suggests - do a statement of affairs first and then the snowball to see how long it will take to clear the debts if you keep with the debts you have now. Is there any way you can increase your current repayments (or effectively spend a little less each month so your overdraft starts to reduce).

Steer clear of securing your debt if you possibly can - it puts your house at a greater risk if you lose yoru income for any reason.