£50000 unsecured loans?

sandyacreuk

Simple question - how can I swap £50,000 of expensive credit card debt to a (much) lower unsecured personal/consolidation load (ideally long-term with low/no settlement penalty).

Why unsecured? - plenty of equity in my property but my banks surveyor delivered a crazy 'forced sale' valuation, so I can't approach the market for a second charge (still attacking them with that).

If I can "swap out" this debt, I can save approx. £1200 per month, and begin a 2-step financial recovery plan.

It's bananas, I'm affording the current debt but it's leaving me with almost nothing at the end of the month. All I want to do is swap and save, but it seems to be baffling financial advisers so far.....

Surely this is possible?

Cycrow

Its unlikely any bank will ever give out £50k of unsecured credit.

and as you are already struggling, then clearly you cant afford it on top of your existing payments

DCFC79

Its probably baffling financial advisers so far because they cant believe what they are seeing/hearing.

Gaz83

No bank worth its salt is going to lend you anywhere near £50,000 as an unsecured loan. If you're determined to go down this route, your best bet is to challenge the surveyor's valuation on your property and try to get a secured loan on that basis.

meer53

Call Stepchange and have a chat with them.

You're not going to get £50k unsecured lending from anyone.

sandyacreuk

I think you misunderstood the situation - Im looking to swap out the debt to a lower interest rate to save a significant amount - not add to it

meer53

sandyacreuk wrote: »

I think you misunderstood the situation - Im looking to swap out the debt to a lower interest rate to save a significant amount - not add to it

Whoever you approach for the £50k unsecured loan will look at it as additional debt. They can't be sure that you won't use it for something else and not pay off your existing debts. Harsh, but true.

Stepchange will give you the best advice as to what your best options are.

Gaz83

sandyacreuk wrote: »

I think you misunderstood the situation - Im looking to swap out the debt to a lower interest rate to save a significant amount - not add to it

Yes, but no bank will see that. Despite all your intentions, the bank have no guarantee that you'll use the £50k to pay off £50k of debt. For all they know you could take the £50k and use it on £50k worth of shiny new things, and then be someone with £100k of debt rather than £50k of debt.

sandyacreuk

meer53 wrote: »

Whoever you approach for the £50k unsecured loan will look at it as additional debt. They can't be sure that you won't use it for something else and not pay off your existing debts. Harsh, but true.

Stepchange will give you the best advice as to what your best options are.

Thank you. I appreciate the positive advice.

sandyacreuk

DCFC79 wrote: »

Its probably baffling financial advisers so far because they cant believe what they are seeing/hearing.

Why? Whats the issue with looking at ways of moving expensive credit card debt to a much lower fixed loan? Yes it's a big number but I am where I am. Shall I just give up?

sandyacreuk

Gaz83 wrote: »

Yes, but no bank will see that. Despite all your intentions, the bank have no guarantee that you'll use the £50k to pay off £50k of debt. For all they know you could take the £50k and use it on £50k worth of shiny new things, and then be someone with £100k of debt rather than £50k of debt.

So how do I overcome that?