Secured loan - adverse credit!

MrsHappyOneDay

Hi there
Im hoping someone can shed some light on the best way forward for my husband and i.
I wont bore you with the details but in a nutshell....
I have debt of £4k and my husband has £25k - including a CCJ.
Our house is in my husbands name (it was his before i met him). At present he is self employed and i am employed full time.
The debt - especially his, is making us both ill so we think the only way out is a secured loan. Because my husbands earnings (hopefully this will change next year) are so low the loan companies will only take into account my salary - but we can borrow the £30k needed to clear all the debt. Sorry im waffling....
My question is - is this the right thing to do? I will go from having £4k of debt - including defaults to a credit file will all settled accounts but a whopping £30k loan. Help!!

Clive_Woody

The normal advice is never to turn unsecured debt into secured debt as you risk losing your house if you do not repay.

How much equity is there in your property?

With your husband with a CCJ and you with defaults I think lenders may not exactly be keen to lend large sums of money.

Your best bet might be to post on the Debt free wanabee message board for advice.

MrsHappyOneDay

There is £100k equity in the house - the payments wont be a problem as is is less than we pay now for all the debt combined. I feel that we're stuck and need a clean break.....but will it actually make my credit file worse - as in £4k with defaults vs £30k but all settled (bar the £30k of course).

Thanks for the other thread - this is my first time! I'll post there too

CLAPTON

what sort of secure loan?
what sort of APR?
who with


have you considered remortgaging?

MrsHappyOneDay

I've just put our details into an adverse credit broker style place......the APR is awful but our credit files dont allow for much else
I didnt think we'd be able to remortgage cos of our credit files? I really dont know anything - hence coming on here!

[Deleted User]

MrsHappyOneDay wrote: »

I've just put our details into an adverse credit broker style place......

Have you given them card details? If they are a broker, I suspect you may not get a loan from them, but will be £70 poorer when they take their fee.

What site did you use?

MrsHappyOneDay

No havent paid anything but have got an offer for the amount we want....Used moneywarehouse?

[Deleted User]

Are you sure it's a real offer? Their site indicates you need to pay a fee first to cover their costs of finding you a loan. It's standard advance fee broker stuff.

Clive_Woody

MrsHappyOneDay wrote: »

No havent paid anything but have got an offer for the amount we want....Used moneywarehouse?

You might want to have a read of this thread...

https://forums.moneysavingexpert.com/discussion/4583777

sistafromanothermista

Or this one

https://forums.moneysavingexpert.com/discussion/4739832

fart

Why do you care about your credit file more than your house?

If the repayments are a struggle at the minute you need serious debt advice, not a secured loan. If you can't afford the current payments, write to the lenders and offer a smaller monthly payment.

Taking out debt to pay off debt is a stupid idea.