consolidating my loans, why not??

Apples2

milkymalone wrote: »

i understand that consolidating these loans will change these personal loans to a secured loan but as long as i maintain the payments then nothing would happen to my home yes?

The reason they are so dangerous is precisely as you have outlined, it all seems so easy, simple and cheap.

The reality is very different. Take a read of this running post to see what happens when people take that easy step in an attempt to clear it all up into a simple repayment.

https://forums.moneysavingexpert.com/discussion/4645051

CLAPTON

what's your income?

how much is your property worth

how much is your existing mortgage

Malky

Personally, I think it would be a total disaster if you were to do such a thing. Do you really want to turn almost £28K of unsecured debt into a possible £56K of secured debt. If one thing stands true, as you've already found out, you can't borrow your way out of debt.

John1993_2

milkymalone wrote: »

thanks for your responce.

oh really? what makes you say that? surely companies would be happy to take this on as they will make a lot more than what that take on and also have it secured against the property.

They will only make it if you pay it back as agreed, and when it is agreed. If you search the forums, you'll see literally thousands of stories from people who intended to pay it back, and then did not. The fact that you have such large debts at the moment will probably make many companies worry that you are a poor risk, so they may well not see things as you do.

The first port of call should be your current bank. They know you best, so may try to help.

milkymalone

general consensus seems to be a big fat no then to this?

a few people have said that it can work though if your can be sure you can be disaplined. which is very much what i intend to be. i am making a full lifestyle change and even relinquishing control of my bank account to my partner, (basically will get an allowance like a child!) despite these things and any other personal improvements i intend to make, does everyone still advise against it?

my view on the fact that the debt could pretty much double is that i dont really care how high it gets? i mean surely id pay rather pay 50£ a month for 100 years and not really notice it than pay 750£ for 5/6 years and pretty much not have any money to leave the house for that time. this may be a very naive and unrealistic view so please any further views and opinions from more experianced people than me are very much appriciated.

thanks.

Lou67

The general consensus is that it's a BAD idea to secure a big long-term loan, against your home. There is only so much the lenders can do when it's unsecured, and if you can not afford to pay the £750 a month, then go visit the CAB and get them to help you draft an income and expenditure form, to enable you to pay less. Your creditors can do very little if you say you cannot pay the £750 or whatever it is, as it is only a consumer debt: it's not child maintenance or rent or council tax arrears or court fines: these people can do VERY LITTLE. They can threaten you, but in reality, can do very little.

HOWEVER, if you secure any debt/loans against your home, you are risking losing your home. They will have you by the short and curlies, and they will stick the thumbscrews on, should you not be able to make that payment. They do not and WILL not care; they will happily repossess your home to get their money.

Me and my husband went down the road you are considering, and three years later, we went bankrupt and were repossessed. Like I said, we paid £10K off the £30K loan, (in 3 years,) and we STILL had £30K left! AND we had another 15 grand or so in new and fresh debt...

Just don't do it. As I said, seek advice from the CAB and get them to submit an income and expenditure form to your creditors.

_Andy_

"my view on the fact that the debt could pretty much double is that i dont really care how high it gets?"

Brilliant.