15k debt help

WELLSIANA

yes i may be choosing but i am looking to pay off the capital better and ease the pay off rate...if what savings i have i throw at the debt it leaves me more open in troubles to higher debt..plus viola would you really leave yourself with nothing and at the mercy of a card..surely a remortgage at the low rates with the view it would be paid in four years is better than whats being suggested unless i am missing it...what everyone does is say what they think...but in my situation what would they actually do...i am hardly gonna lose my house over £15k when it stands 250k collateral surely ...

ViolaLass

I see your point but if they won't lend to you, they won't lend to you.

I certainly wouldn't be keeping savings in the bank if I could use them to pay off much higher interest debts.

Apples2

WELLSIANA wrote: »

..i am hardly gonna lose my house over £15k when it stands 250k collateral surely ...

But you can't just sell the toilet.

£15k isn't much for a secured loan but you will owe it, and they will want it. If you can't find the repayments you could lose your home, albeit you will have the lions share of the sales proceeds.

The decision is yours though and not ours but one of the most fundamental rules of debt is to never convert unsecured borrowing into secured borrowing.

Why not use a chunk of your savings to bring the monthly repayments down to a more manageable level?

It's no good having savings for a rainy day if it is ****ing down.

DCFC79

Sorry OP but I have to agree with everyone else, a secured loan isn't the way to go but its your choice at the end of the day.

springdreams

Use the savings to pay down the debt, then use some of the money you would have been paying towards the debts to build up the savings again.

WELLSIANA

apples..i do understand but i am managing to pay the charges at the moment..i have not missed so why if i secured it with a lower rate for say 5 years when it can be paid in full would that not be better..i am not saying i can not pay the loan or charges i am looking for a sensible way of eating into it at a lower rate...your bit about you can not just sell the toilet i also fail to understand...i live in a 4 bed and soon will only need a small maybe 2 bed at most ..so will downsize naturally soon and will on prices around me still be £50k roughly in profit...and if i was forced be it a problem i could actually do it anytime...i find it difficult to see why everyone would choose a harder route than the easy one if availible

CLAPTON

WELLSIANA wrote: »

apples..i do understand but i am managing to pay the charges at the moment..i have not missed so why if i secured it with a lower rate for say 5 years when it can be paid in full would that not be better..i am not saying i can not pay the loan or charges i am looking for a sensible way of eating into it at a lower rate...your bit about you can not just sell the toilet i also fail to understand...i live in a 4 bed and soon will only need a small maybe 2 bed at most ..so will downsize naturally soon and will on prices around me still be £50k roughly in profit...and if i was forced be it a problem i could actually do it anytime...i find it difficult to see why everyone would choose a harder route than the easy one if availible

you have applied for a loan and been refused


why?


if you have debts of 15k and apply for a 15k loan then the lender will see your total debt exposure as 30k


they will expect to see an income of round 60k to justify the risk


why is your income?


facts always help

ViolaLass

WELLSIANA wrote: »

apples..i do understand but i am managing to pay the charges at the moment..i have not missed so why if i secured it with a lower rate for say 5 years when it can be paid in full would that not be better..i am not saying i can not pay the loan or charges i am looking for a sensible way of eating into it at a lower rate...your bit about you can not just sell the toilet i also fail to understand...i live in a 4 bed and soon will only need a small maybe 2 bed at most ..so will downsize naturally soon and will on prices around me still be £50k roughly in profit...and if i was forced be it a problem i could actually do it anytime...i find it difficult to see why everyone would choose a harder route than the easy one if availible

I don't know why you're so determined to persuade posters on this thread that you should be allowed to have a mortgage. It's not up to us.

You want a sensible way of eating into it at a lower rate and suggestions have been made, primarily using your savings to lower the amount you owe (which might then help you to refinance). Why are you reluctant to do anything about your situation other than complain about the banks not giving you what you want?

Apples2

WELLSIANA wrote: »

.i live in a 4 bed and soon will only need a small maybe 2 bed at most ..so will downsize naturally soon

If this were true you would have a For Sale sign outside your house right now and wouldn't even need a loan.

The solution is right there in front of you but for whatever reason, you are trying to get a loan instead.

Our words of caution are because we are considering the risk. The risk that as a Self Employed person you have no income protection so if you get injured/fall ill or for any other reason cannot work, you will be in serious financial trouble. Much more serious than struggling to meet a credit card payment.

desperate_times

Nuclear option but how about defaulting on the cards and asking for interest to stop. You could then use the current payments you are making to pay down the principal relatively quickly. It will hurt your credit rating but sounds like you are not going to need to borrow again anyway especially once you downsize.