Secured loan

Puzzcat

Easy answer don't do it.. I had the loan.. twice and got the t-shirt.. and ended up with 60k debt.. I am now on a dmp paying it back. The best way forward is to snowball your current debts as others have said. If you can't afford the repayments now then maybe check out the stepchange debt remedy tool. I wish you luck but please don't borrow more to get out of debt.

Foxy-Stoat_3

Your better off down valuing you current house and overpaying the new mortgage by the £500 a month you would of spent on the additional borrowing.

In 10 years look to buy a bigger house again.

Borrowing over a longer period is not the best way to clear your debt.

TheNut

Answers to some of the questions. We have been making some cutbacks yes, but to be honest, nowhere near enough, I haven't treated this seriously enough, but I want to get 100% commited to sorting things now. Our combined debts are about the same, or slightly less. I'll be honest, I have been making my minimum payments and not taking any real time to look at reducing my debt properly.

Upsidedown_Bear

Do a Statement of Affairs and then post it on the Debt Free board and see what people have to say
http://www.stoozing.com/calculator/soa.php

jonesMUFCforever

Does OP know about the new mortgage rules regarding re-mortgages/further advances?
I would be amazed if he got a loan for this amount for this purpose in this day and age - and that is before any affordability checks are done.

Pixie5740

Don't turn unsecured debt into secured debt. If you run into further financial difficulties then you will be risking the roof over your head. There have been numerous posters on the forum who have done just that. The other common theme with the secured loans is the variable interest rates which only vary one way....UP.

At the moment you're looking at borrowing £36,000 with repayments of £400 a month for 10 years which equates to you repaying £48,000 in total so that's £12,000 in interest. :eek:

If you're struggling to meet your repayments then I highly recommend you contact on of the debt charities such as CAP or Step Change for advice.

TheNut

I am going to forget the idea of a big secured loan. Everyone on here and everyone else I have spoke to has said don't do it. I am not struggling at the moment, I have never missed a payment, but it is very tight, I do find once all my bills are paid there's almost nothing left each month. I am going to start a debt diary and make some big changes.

MallyGirl

That sounds like the best way forward - good luck

TheNut

Thankyou, I'll start my debt diary this weekend.