Secured loan - adverse credit!

sistafromanothermista

sistafromanothermista wrote: »

Or this one

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

Really though, take advice from the thread i linked. I very much doubt either you or your husband would be able to secure a re-mortgage based on your current circumstances and the places which might would be :eek: APR's.
You're best off posting up an SOA and seeing where you can cut some costs and try and switch to 0%'s if possible.
First step SOA.
Next step, for £2 each, order your credit reports and see what's going on there.

From a personal perspective i definitely WOULDN'T secure a loan against your property. If you default you'll be without a roof....

Serious stuff.

MrsHappyOneDay

The info re the company is great thanks! This is my first post and some of the comments have been great so thanks. We do already have our credit files - we know exactly what we owe and to whom, down to the last 1p.

MrsHappyOneDay

fart wrote: »

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.

This is not the case at all. To be frank, i posted on here for advice! If you read my previous posts hopefully you will understand the situation and my reason for posting.

sistafromanothermista

MrsHappyOneDay wrote: »

The info re the company is great thanks! This is my first post and some of the comments have been great so thanks. We do already have our credit files - we know exactly what we owe and to whom, down to the last 1p.

That's good.
The next step is to post up an SOA (statement of affairs)

http://www.stoozing.com/calculator/soa.php


Best to post up on the debt free forum.

fart

MrsHappyOneDay wrote: »

This is not the case at all. To be frank, i posted on here for advice! If you read my previous posts hopefully you will understand the situation and my reason for posting.

I will go from having £4k of debt - including defaults to a credit file will all settled accounts but a whopping £30k loan.

but will it actually make my credit file worse - as in £4k with defaults vs £30k but all settled (bar the £30k of course).

You've mentioned clearing a debt by taking out more debt, and seem to be very concerned with the state of your credit file...i may have misinterpreted and if i have i'm sorry, but it's an easy mistake to make based on your previous posts.

If you can't hendle the repayments then go to a debt charity and seek help with making the payments more manageable, getting a secured loan is complete madness.

MrsHappyOneDay

By mentioning the credit file i was asking "which is best" The small debt and unsettle accounts - yes we are paying bits off every month. Or one larger debt with all other accounts settled...
We can handle the repayments - we are paying them now but its going to take a LONG time. Hence why we thought the mortgage/secured loan was a better route - esp as we have such a small mortgage at the moment.

fart

MrsHappyOneDay wrote: »

By mentioning the credit file i was asking "which is best" The small debt and unsettle accounts - yes we are paying bits off every month. Or one larger debt with all other accounts settled...
We can handle the repayments - we are paying them now but its going to take a LONG time. Hence why we thought the mortgage/secured loan was a better route - esp as we have such a small mortgage at the moment.

If one of you is made redundant or circumstances change what do you do then? Move into a door way? Never ever secure on your home.

lynz68

Sorry but it is never advisable to turn unsecured debt into secured. Not worth risking losing your home if something happens to reduce your income.

It would've better to go on to the debt free wannabe board post your SOA and get advice about reducing your outgoings

Also talk to one of the debt charities to see what they advise maybe better to enter into a DMP with your creditors.

Tixy

MrsHappyOneDay wrote: »

By mentioning the credit file i was asking "which is best" The small debt and unsettle accounts - yes we are paying bits off every month. Or one larger debt with all other accounts settled...
We can handle the repayments - we are paying them now but its going to take a LONG time. Hence why we thought the mortgage/secured loan was a better route - esp as we have such a small mortgage at the moment.

Your credit files are not going to look good whichever option you take.
His CCJ and the defaults will still show even if they show as settled. You personally will have a much higher level of debt and will be financially associated with your husband and his bad file (if you are not already). You both would still find it hard to get mainstream credit (although presumably you wouln't want any further credit at the moment anyway).

As you can afford the repayments then I would look at snowballing. Work out how much you can afford a month above your existing debt minimum payments and enter all your debts and APRs in to a snowball calculator to see how quickly you can pay off the debt and the best order to tackle your debts (those costing the most interest first). See here - http://www.whatsthecost.com/snowball.aspx

dealer_wins

I would say try to avoid getting a secured loan at all costs.

What will happen is you will take out further loans/credit cards etc and eventually end up losing the home.

Sounds extreme but I have seen it happen time and time again in my banking career.