Secured Loans - help!

paulinetc

I am a homeowner and my debts are now out of control as i've been trying to keep my head above water for a while now with the mortgate. I need some serious help with dealing with these. I have been through PayPlan who have recommended I take out a secured loan. However, I am planning on selling my property in a years time - so if i take out a secured loan against my property of £18,000 what happens when I go to sell it? From what I can tell, any equity I make on my house when it comes to selling will all go into this loan and I am left with nothing. And what if there is not enough equity to cover the remaining balance of the loan? I don't really know what other choices I have
I have a poor credit rating so am unable to get a personal loan to pay everything off. I am now starting to get into arrears and I don't know what to do for the best!
Help!

purdyoaten

Bit confused here - you will not be able to be considered for a secured loan unless there is sufficient equity in the first place - you would be in negative equity as a result. Strange option for payplan to advise.

paulinetc

Sorry if I sound confusing! My house is currently in around £20k of equity. But not all of that will come to me, as I have an ex on the mortgage who will ensure he reaps in the cash!

SuperHan

Did you tell PayPlan that half of the equity isn't yours?

You would take a loan out of the equity you have in the house, then pay it back when you sold the house. If you lend against all of the equity then no, you won't have anything left when you sell, you just break even.

Pixie5740

Are you even able to take out a secured loan against a jointly owned property? Not to mention secured loans aren't as easy to come by these days especially for people with a poor credit rating.

Are Pay Plan a proper debt charity? You might be better off contacting Step Change or Christians Against a Poverty for some advice.

purdyoaten

Pixie5740 wrote: »

Are Pay Plan a proper debt charity? You might be better off contacting Step Change or Christians Against a Poverty for some advice.

Most definitely - payplan are generally held in similar high regard to stepchange - check the debt free wannabee forum

~Beanie~

Can't you sell the house now?

Apples2

I struggle to believe PayPlan advised you to convert your debt into a Secured loan, are you sure that is what they advised?

fermi

https://www.payplan.com/services/secured-loans/

fermi

purdyoaten wrote: »

Most definitely - payplan are generally held in similar high regard to stepchange - check the debt free wannabee forum

Sadly, they often seem to be more interested in selling products and services than giving debt advice these days.

Not in all cases by any means, but a bit too often all the same.

MEM62

paulinetc wrote: »

I am a homeowner and my debts are now out of control as i've been trying to keep my head above water for a while now with the mortgate. I need some serious help with dealing with these.

Post up a SOA in the debt-free wannabe board and you will get some very useful advise on budgeting / managing your money.

I have been through PayPlan who have recommended I take out a secured loan.

Probably not a good idea unless it's you absolute last resort.

However, I am planning on selling my property in a years time - so if i take out a secured loan against my property of £18,000 what happens when I go to sell it? From what I can tell, any equity I make on my house when it comes to selling will all go into this loan and I am left with nothing. And what if there is not enough equity to cover the remaining balance of the loan? I don't really know what other choices I have
I have a poor credit rating so am unable to get a personal loan to pay everything off. I am now starting to get into arrears and I don't know what to do for the best!

Firstly, look at you spending so see what can be achieved. In respect of a secured loan, you mention elsewhere that your Ex has an interest in the property. It is unlikely that you can take a secured loan against the property without their consent.

I also doubt that they will agree to their 'half' of the equity being put at risk.