SECURED LOAN HELL sorry long post

dimples666

Hi
I am a newbie and desperate for assistance or advice.
My loan company Webb is insinuating it will be proceeding with repossession or whatever they call it.

I stupidly took out a secured loan around 5 years ago to cover the debts ran up by supporting the man i thought was the love of my life and spoiling him with cars and holidays, he then left a year after we had a child, but i digress :mad: i was left saddled with the loan as it was in my name only, i put no blame on him it was my choice but he could have helped instead of taking advantage.

The monthly payment was £480 a month over 25 years. But i could easily afford this as i was very well paid.

However my health rapidly deteriorated I was dismissed from my job due to the grounds of ill health, i am bipolar, in Oct 2010 and since then my repayments have been hit and miss as i have been on employment support allowance and other benefits making money tight.
However for the last year with the loan companies agreement i have made a payment of £260 every month without fail.

My health is slowly improving, after finally getting my meds right, and i can finally go out ( i was almost house bound before) but i still cannot work as i cant cope in busy situations, i cant speak on the phone and i dont cope well in social situations with strangers.

Is there any way for me to get rid of this loan before the 25 years? Should i try for a re loan over a shorter term?

I am more financially stable but my credit score is fair/poor and i can now afford to make the full payment with the financial help of my parents for the first time from next month but ideally i need it gone from round my neck much quicker than in 20 years?

Thanks for reading
I appreciate all offers of assistance
B x

dancingfairy

O.K So you can afford 260 a month but you can't afford the full amount each month, the loan company are getting fed up and want to reposses (or at least threatening it)?
You have somehow got the idea that the best thing to do is to shorten the term and pay more off each month yet you can't afford the actual minimum you signed up to?

Your options appear to include making the full minimum payment that you signed up to (with help from your parents if neccessary) plus possibly something towards the arrears and hope this is enough to stop the company issuing repossession proceedings and that you continue to feel better and regain employment or something else (I'm not sure if an IVA or bankruptcy would help you or not as I'm not sure whether you can include secured debts).
I would probably seek some advice from CAB or National Debtline or CCCS as to the companies chances with seeking repossession or whether it is mere threats (I'm not sure given that they appear to be the 2nd charge and not the main mortgage).
Do you have any other debts?
Best of Luck
df

dancingfairy

How much was the secured loan for? Can you get a settlement figure? Are your parents able to settle this debt for you and you repay them at a rate you agree between yourselves?
Your idea of trying to shorten the term seems crazy because a) you are unlikely to get a decent loan at a decent rate (if at all) and b) because it will put the monthly repayments up (which you can't afford by all accounts).

df

dimples666

Thanks for your replies
No my parents cannot afford to pay the debt only to help monthly.
I have no other debts i paid them all off so my monthly outgoings would be trimmer and i could get close to making the full payment for this loan.

I have cut out everything i can think of and we even grow our own veg and herbs and soft fruits to save money and i am an ebay addict selling all out grown kids clother and buying new ones from there too.

I am trying to avoid losing my home and i assume bankrupcy would mean that so thats out of the question ( i hope).

The company have said they would not begin proceedings if i start making the full monthly payments but the payments will cripple me long term. My parents however can afford to help me in the mean time with making a larger payment over a shorter term, say ten years, which is why i thought a re loan with a shorter term may be better.
The exsisting company wont let me shorten the term.

The original loan was with Picture Finance who have since become Webb Resolutions and was around £55000 ( i know i was a dummy, your probably thinking the biggest dummy ever, but knowing that does not change that i need to get this loan gone much quicker than another 20 years!)

Thanks Again

beanielou

Just popping in to say hello & welcome.
Sorry, but I have nothing to suggest.

dancingfairy

You do not loose your house if you are in significant negative equity in bankruptcy (and it's likey to remain in negative equity for the next few years). Unfortunately I think that it only deals with unsecured debts and would leave you to still pay the mortgage and secured debt which in your situation would have little/no effect on you apart from cost to go bankrupt/ cause more stress.
Hmmm, it's tricky. Have you looked into an IVA? I'm not sure whether secured debts can be included in an IVA or not?
To be honest you may be best looking at handing the keys back and renting somewhere and possibly going bankrupt to deal with any remaining debt
Um - do you have space for a lodger or anything? Could you rent somewhere cheaper and then rent out your home? Just trying to think of any ideas for you.
Best of Luck
df

dimples666

Thanks DF no room for a lodger unfortunately, and its taken me 20 years to get to the stage where i have my own home (albeit mortgaged etc), i really really dont want to waste the 30k i have already paid off my mortgage and lose my beloved home, plus the upheaval for my children would be terrible not to mention the upheaval would probs set my bi polar off again and i would lose months and potentially end up back in psyche unit as when ill with it i cant care for myself ( i am unaware of anything when i am this ill).
I have enrolled on a soft furnishings course ( very brave for me!!!!) and i am hoping to be able to learn to make blinds and things and sell them on ebay etc, i also have lots of ideas for other stuff to make and sell once i have learned the skills so hopefully i can nibble away at things. But this will take a while to set in motion.

However in the meantime i have been reading other posts and have lots of ideas such as music magpie, moble phone clear out etc which will help me make the full payments. I feel more positive and although i havent as yet made the financial first steps to clear this debt i feel like i am on the right path.
I will try and post monthly to show my progress