move loan or stick with existing

lookingforthelight

Hi all,

I have a very poor credit score, with defaults but no ccj's.

I have a small secured loan, quite high interest but with a perfect payment record, and want to consolidate my remaining debts (£3000) on to it.

I think this would help my credit score as a settled default looks better than an ongoing default.

I am also tempted to try and move my secured loan to try and get a slightly better rate but am wary of credit search footprints on my file.

So i want to give this just 1 shot. Would i stand a better chance of staying with my existing lender and asking for an extra £3k or trying to move to a new lender altogether?

Thanks

sourcrates

No for gawds sake don't turn unsecured credit into secured debt.

Borrowing your way out of debt seldom works, the number of posters to this forum bare testament to this.

Find another solution, can you get more hours at work? Can you sell something ? Reduce your outgoings ? Anything is preferable to putting your home at further risk !!!

I would advise strongly against taking this course of action OP.

andyfromotley

sourcrates wrote: »

No for gawds sake don't turn unsecured credit into secured debt.

This is VERY sound advice.

Pixie5740

As has already been said, don't turn unsecured debt into secured debt. At the moment that £3k of unsecured debt is not a priority bill. The minute you turn it into secured debt you have to pay it come hell or high water otherwise you'll risk the roof over your head.

Maybe you could put together a statement of affairs and identify areas of spending you could cut down to overpay your debts instead.

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