Loan needed - maternity leave???

Flossie.

Gaz83 wrote: »

Your previous posts suggest that your idea of home improvements include adding a porch to your house.

You are completely bonkers if you think taking a secured loan to pay off someone else's unsecured debts, and adding thousands to perform a cosmetic facelift to your house, while you're on maternity leave, is a good idea.

All the responses here are good, but this one stood out. Don't rob Peter to pay Paul for goodness sake. Taking out additional monies purely to do non-essential works to your home, when you're about to lose some income is madness.

Also, you say your husband is 'on your case' to take out loans in YOUR name to pay off his debts.

Just wondered; how come you're paying off HIS debts if you're married? And how come he even has individual debts? None of this sounds much like married couple behaviour to me. Surely, any money that either of you borrowed, should be joint?

Are you not hearing warning bells/seeing warning signs here???

dealer_wins

KELY wrote: »

We can comfortably cover the repayments

With all due respect, if this was the case then you would be looking to re-finance your previous borrowings.

chanz4

So the o/d has been recalled, sounds like its going to be hard as likely to default

Bantex_2

KELY wrote: »

I wouldn't take anything out we couldn't afford. We can comfortably cover the repayments with me goimg back part time.

Sorry, but if you could afford you would not be sitting on a £9500 debt.

stator

Have you tried to contact the bank and work out a repayment schedule for the overdraft? Whilst they want it repaid in full you might as well try to come to an agreement to get it paid off over time.

stator

Oh and if they are calling in your overdraft, make sure you open a new bank account with another bank (one you don't have debts with) and get both of your wages paid into the new bank account. You don't want all your monthly income being suddently swallowed by the bank you owe money to.

TBeckett100

Your financial position seems prety tight to me, especially with a baby. The last thing you want to do is rack up more debt on the never never. You say with part time work its affordable. But on ML, it probably wont be. You should pay down the debt when you go back to work and clear the slate.

Your OH shouldn't be hassling you to get a loan to pay his debts. You need to preserve your financial position, not hock your equity in the house or become financially responsible for his doing. I know love is love, but financials should remain separate where debt is involved.

Securing the debt is also potentially bad. Assuming OH gets laid off. Suddenly your home is at risk. If the debts remain in his name, then your home should be OK. Also, it is not your fault he has debts at high APR's. That is his mishandling of the finances.

If you hock the home and money gets tight, facto in a new baby, resentment in the future, I predict a sticky outcome for this. Keep it simple, keep it separate and dont spend money you don't have. You need to go ino preservation mode now you are a parent.

Also, borrowing such a high percentage of his salary as a loan is also a no no. It could make a remortgage in the futue difficult and you may end up stuck on a standard variable at the whim of rising interest rates.