Secured Loan Option

moneymoron1

Hello,

I hope you can help, i have copied my SOA from a thread in DFW, i am looking at the possibility of getting a secured loan, i am aware of how much this is considered last resort lending, but i think i am at my last resort now, i have too much unsecured lending, no excuses, i've been stupid and i am trying to rescue my situation

There is equity in my house and i have never missed a payment on any of my debts, i just have too much credit.

The idea behind the secured loan of maybe 10000, is to remove the payday loans, and clear my halifax overdraft (costs the most) and 1 credit card.

I could then hopefully negotiate a rate with the newly cleared credit card to transfer some of my remaining debts to

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 3100
Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 13
Council tax............................. 95
Electricity............................. 30
Gas..................................... 11.5
Oil..................................... 0
Water rates............................. 12.5
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 7.5
Satellite/Cable TV...................... 25
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 80
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 5
Life assurance ......................... 13
Other insurance......................... 7
Presents (birthday, christmas etc)...... 25
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1789.5

Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 140000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(500)......4.69
Total secured & HP debts...... 97000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................1700......75........24.9
Credit Card 2..................2250......50........24.9
Credit Card 3..................2500......75........22.9
Overdraft 4 lloyds 2...........50........5.........0
Overdraft 3 lloyds.............1500......30........0
Overdraft 2 halifax............2880......85........0
Overdraft 1 abbey..............2750......50........0
Credit Card 5..................450.......25........34.9
Credit Card 4..................750.......25........28.9
Total unsecured debts..........14830.....420.......-

Monthly Budget Summary
Total monthly income.................... 3,100
Expenses (including HP & secured debts). 1,789.5
Available for debt repayments........... 1,310.5
Monthly UNsecured debt repayments....... 420
Amount left after debt repayments....... 890.5
Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -14,830
Net Assets.............................. 28,170
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

The overdrafts arent interest free, and the monthly payments are just to service the debts

Now for the expenses that are causing me the most problems, the dreaded payday loans. I am absolutely disgusted in myself for this and i am trying to resolve it, DMP i don't believe to be an option due to the default situation remaining on my record for 6 years, i hope to buy a house with my wife at some point, she doesnt know about the debts and would find out if we went for a mortgage and i had defaults.

Wonga 1655, minimum payment to rollover 312

Quickquid 1375, minimum payment to rollover 275

Lending Stream 587.5, due monthly payment of 248.6

Lending Stream 89.7, final payment due of 89.7

Safeloans 290, due monthly payment of 176.3

Safeloans 158.22, due final payment of 158.3

Quid 451.5, due monthly payment of 136.5

All payments due in the next fortnight when i get paid

Any help and/or advice would be greatly appreciated

Regards

mm1

R_P_W

Rent and mortgage?

Tixy

If this is your SoA now what has changed from when you were running up the payday loans?

At the moment you are showing as having £890 a month surplus even after your high level of conventional borrowin. So to have run up nearly £5k in payday loans then I would guess you have been spending maybe £1500-£2k more a month that you are showing on the current living costs.

Is hoping to drop your outgoings by that level realistic? If not and you take the secured loan you could be risking far more than a few defaults on your file.

You have rent and a mortgage - is this a shared ownership home? if so is a secured loan even an option? is the value of the house realistic? as you are already over 70% LTV.

moohound

Hi MM1, welcome to the forum, well done in posting your SOA.

Would all those PDLs have an adverse effect on your credit rating anyway?

Without the payday loans it wouldn't be that bad and could probably be cleared with the snowballing method.

I can't really suggest anything other than a DMP, and you want to avoid going down that route.

You might feel better if you tell your other half what is going on, I know i did.

Maybe the smart folks on here can think of something.

moneymoron1

R_P_W wrote: »

Rent and mortgage?

I have my own house that is rented out for 600 a month

I rent elsewhere as I moved north for work

Angry_Bear

Just FYI, this is also posted on DFW: https://forums.moneysavingexpert.com/discussion/4589761

moneymoron1

Tixy wrote: »

If this is your SoA now what has changed from when you were running up the payday loans?

At the moment you are showing as having £890 a month surplus even after your high level of conventional borrowin. So to have run up nearly £5k in payday loans then I would guess you have been spending maybe £1500-£2k more a month that you are showing on the current living costs.

Is hoping to drop your outgoings by that level realistic? If not and you take the secured loan you could be risking far more than a few defaults on your file.

You have rent and a mortgage - is this a shared ownership home? if so is a secured loan even an option? is the value of the house realistic? as you are already over 70% LTV.

My wage has improved a lot in the last few months. The payday loans were because I was living on credit (still am) and I had a few expenses that I thought I could resolve quickly but mounted up, and the dreaded pride stepped in.

I understand the risk with the secured loan, I believe I can service the debt, and I want to try and do it without a DMP.

I wouldn't normally consider moving unsecured debt to secured debt but I think it may allow me a route out of these issues?

Value is realistic I think, house isn't shared ownership, I work elsewhere and not worth selling the house as it is rented out for more than the mortgage

moneymoron1

moohound wrote: »

Hi MM1, welcome to the forum, well done in posting your SOA.

Would all those PDLs have an adverse effect on your credit rating anyway?

Without the payday loans it wouldn't be that bad and could probably be cleared with the snowballing method.

I can't really suggest anything other than a DMP, and you want to avoid going down that route.

You might feel better if you tell your other half what is going on, I know i did.

Maybe the smart folks on here can think of something.

I agree, PDL's are causing problems on my credit history but if I can get the, all settled that wont be as bad a defaults etc.

I believe I could snowball if I got rid of the things that are causing me all the problems

[Deleted User]

with all that pay day debt in your history NO decent lender will touch you with a barge pole,secured or otherwise
sorry but thats just how it is no sense wrapping it up

moneymoron1

Thanks woodbine,

I suppose that is my real problem, should I get refused for a secured loan and it is likely. I will then be left with little alternative that most likely a DMP.

There is my mum on the mortgage of my home who earns a good wage so I could potentially have her on the loan with me if she will agree, I think she would do, her wage is 70k

Angry_Bear

moneymoron1 wrote: »

Thanks woodbine,

I suppose that is my real problem, should I get refused for a secured loan and it is likely. I will then be left with little alternative that most likely a DMP.

Not necessarily, given your SOA a DMP is probably overkill. Most payday lenders will agree to a monthly repayment schedule without a DMP if you tell them you are having difficulty repaying them (I believe this is partly because of all the bad publicitly they get). I don't know how they report this to your credit file but probably as a default or arrangment to pay.

With £890 per month to play with you could clear the payday loans in 3 or 4 months and start putting these in the past (credit-report-wise).