Secured Loan - Prestige Finance

Dizzy1972

Hello,

I'm looking to take out a secured loan with Prestige Finance to consolidate some debts.

Having read all the T & C's I'm slightly concerned about the variable interest rate.

Whilst I'm happy with the initial rate offered I'm concerned Prestige can increase this, whenever and to whatever they like.

Does anyone have any experience of a secured loan with Prestige Finance? Was the interest rate increased massively once the loan was completed?

Is Prestige Finance a reputable company to deal with?

Or should I steer well clear of a secured loan, full stop?

Many thanks

AFK_Matrix

From all that I have read on here about consolidation loans and secured loans your last question there is what the majority of people will advise.

Stay well clear of secured loans as turning unsecured loans into a secured loan could be a recepie for disaster. I assume you know if you can't pay off your secured loan your at risk of loosing your house (I assume this is what the loan would be secured against?). Most people also advise to not get an unsecured consolidation loan either as some people don't cut up the cards they ran the debt up on and just use them again so doubled their debt.

I would put up an SOA here and see what the good people can suggest as you'd be suprised where you can make savings

National_Debtline

Dizzy1972 wrote: »

Hello,

I'm looking to take out a secured loan with Prestige Finance to consolidate some debts.

Having read all the T & C's I'm slightly concerned about the variable interest rate.

Whilst I'm happy with the initial rate offered I'm concerned Prestige can increase this, whenever and to whatever they like.

Does anyone have any experience of a secured loan with Prestige Finance? Was the interest rate increased massively once the loan was completed?

Is Prestige Finance a reputable company to deal with?

Or should I steer well clear of a secured loan, full stop?

Many thanks

Hi Dizzy

Here's one way of looking at it.

Consequences of struggling to pay unsecured credit debts: adverse information on your credit file, letters/phone calls demanding repayment, possible recovery action through the civil courts.

Consequences of struggling to pay a secured loan: all of the above AND the risk of losing your home.

That might sound a little dramatic but it's worth bearing in mind.

I would echo AFK's suggestion that you post a Statement of Affairs up here so that forumites can advise you on alternative options.

Regards

Dennis
@natdebtline

rockm87

I agree with matrix. There are plenty of people here who will be able to advice on better options!

sourcrates

Hi Dizzy, it is never a good idea to turn your unsecured credit debt into secured credit debt.
You mention the variable interest rate, they can, and probably will, raise this as they choose, you don't, mention how much your looking to borrow, but I assume its a significant amount, which means just a one per cent rise in interest will up your monthly payments considerably.


You may end up been worse off than you are now, and if you default on the loan, your house will be seriously at risk.


Its a kind of borrowing that should not be undertaken unless you have a significant pot of savings that you could call on should the need arise, if you haven't, which I suspect is the case, then I would advise you to forget about it, as the risk is just too great.


The current jobs market and state of the economy means that very few jobs could be described as "safe".


A better option for you will be to post up a statement of affairs, then people can see what you have coming in/going out, and how much debt you have, there are a number of options available to tackle debt, if we have a clearer picture of your status, people can advise you accordingly, but I would give the secured loan a very wide berth, if I was you.