struggling to get loan

sharon5cc

We have 35000 on credit cards. Trying to get loan but not happening. think only option is secure loan. Any help to which company? Not missed payment yet.

Tixy

Hi

Are you struggling to keep up with repayments on the cards?

It isn't recommended on these forums to convert unsecured debt in to secured debt, as it puts your house at greater risk if you have a change in circumstances.

If you are struggling with unsecured debt repayments then it may be worth speaking to one of the debt advice charities as a first option IMPORTANT - Where to seek professional impartial advice about your debts. - and perhaps posting on the debt free wannabe section of the forum. DFW Newbies: Where to start, Challenges, SOAs, Nerds & Debt Free Roll of Honour!

However if you did decide you still wanted to look in to a secured loan - how much is your property worth? and what outstanding mortgage do you have on it (if any?). Who is your current mortgage provider?

sharon5cc

76000 on mortgage and house worth 170000. Nationwide mortgage but will only allow 9000 for debt. Just about paying but need to sort out as hubby cannot maintain the level of overtime he is doing.Cannot go down DMP route as could affect job.

jimmy*c

I echo the advice given above. Don't make your credit cards threaten your property. First things first, get on the DFW forum and post up a statement of affairs - This maps everything going in and out, and what you owe and what assets you own.

I'd still shy away from a secured loan before a DMP or an IVA though... Just a thought?

DCFC79

Wowsers 35k on cards, how did it get to that point.

macman

'Just about paying'? If you can barely service the current debt, how do you think that taking out a further loan is going to help?

Foxy-Stoat_3

macman wrote: »

'Just about paying'? If you can barely service the current debt, how do you think that taking out a further loan is going to help?

Because they will be paying the £35K over 15-20 years instead of the credit cards 7-10 year, or never, repayment plan.

Post up what you owe with the interest rates and current salaries to see if there is anything you can do in the short term.

If you can down value your car(s) to pay chunks off that would help.

Tackling £35K worth of debt is never going to be a quick and easy fix, if you want to go down the secured loan route you should read all the terms and conditions of the loan and how much you will end up paying in the end. Also you will find out that the lender is within their rights to sell the debt to other lenders, or vary the interest rate and if you miss one or two payments then it will cost you ALOT, miss say six months payments then ANY equity you think you have in your home will be long gone.

Only other thing I would do is down value your home or move to a cheaper area.

Foxy-Stoat_3

https://forums.moneysavingexpert.com/discussion/5225811

^^^^^^^^^^^^^^

OP, Check out this poor sap, they are 7 years into a 10 year loan and only now do they realise how expensive they are.....borrowed £13K and they will end up paying back £32K. Your £35K of unsecured debt will cost you over £80K after the ten years are up, assuming you can pay it for the next decade....oh and if you want to move, or for any reason have to sell your house then I am sure you will repeatedly punch yourself in the leg when you find out what the early repayment charges are.

There are plently of these threads for you to research before you make your choice.

dealer_wins

OP I would post a SOE on the debt free wannabe board.

It seems a case of re-financing and paying back probably £80000 over a long period, or cutting your lifestyle back to within your means.

Cutting back will be painful, but not as painful as still paying a loan in 20 years time!!

Having £35K on credit cards means you have been living a life your income cannot afford or sustain, even if you go for a refinance it will still mean reducing your outgoings susstantially.

Foxy-Stoat_3

Just an aside, IF you can secure a £35,000 secured loan over 25 years at 5.1% interest rate you will pay back a total of £61,000.....as this is for debt consolidation then you will be paying a lot more interest, at 11.3% you will pay back £100,920 - information from compare the meerkats.

Exhaust all other avenues before thinking about a secured loan.

Pixie5740

sharon5cc wrote: »

76000 on mortgage and house worth 170000. Nationwide mortgage but will only allow 9000 for debt. Just about paying but need to sort out as hubby cannot maintain the level of overtime he is doing.Cannot go down DMP route as could affect job.

Whose name is the credit card debt in? Yours? His? A mixture of both?

Whose job would a DMP affect and why? Many moons ago I worked in a bank next to someone who had an IVA and she still managed to pass the referencing to get a job.

You could downsize to release some equity from your home. Secured loans are a lot more difficult to come by these days and they tend to be quite expensive.

If you're struggling to meet the repayments then contact Step Change of CAP UK for further advice.