Help with bad credit loan

JanNB

Hello everyone,

I had to give up work 10 years ago due to being diagnosed with a chronic illness.
I had a very good salary before that but after giving up work I started to struggle with my debts and entered a downward spiral.

I have debts of around £18000 these are credits cards. They have all defaulted and I have payment plans where I only pay back a very small amount every month. At this rate they will never ever be clear.

I have to visit hospital 2 x weekly for treatment and I just lost my mobility vehicle as I was called to change from DLA to PIP and because I can walk more than 20 metres I no longer quality as they reduced the distance from 50 metres to 20 metres.

Ive got to hand my car back very soon and I don't know how I'm going to manage without a vehicle for my appointments. I live in quite a rural area.

I have equity of around £60000 on my home.

My credit score is 137! The only way I can think of to boost it is to pay of the debts and the only way I'll ever be able to do that is with a loan.

I'm married and my husband's credit file is affected due to being financially associated with me as we had 2 joint accounts with defaults.

We were offered a Homeowner Loan of £10000 but the Broker Fee was around £2500 and the interest meant we were paying back around 4 times what we borrowed.

I just can't see any way out of this ever.

Does anyone know where I could lease a car from with a bad credit history at prices that aren't too crazy and does anyone know of direct lenders who will lend to Homeowners with bad credit where there is no broker fee?

Thanks

IAmWales

A loan is not the answer here. Your IVA IP is unlikely to give you permission, and you cannot manage the debt you have, you don't need more.

Have you looked into downsizing to release the equity, or selling up and renting? That's the only viable option I can see.

JanNB

I don't have an IVA, I have defaults. I can't sell the house as it's been adapted for my medical condition.

System

You're bankrupt. That is the long and short of it.

Sell the house, move into a smaller house or rent. Use some of the money to buy a car. You can't afford to lease a car and the deals for those with bad credit are horrific anyway.

Fishingtime

Why do you want more debts ?

BrassicWoman

A few options
- talk to a debt charity anout IVAs or bankruptcy
- if you are on a low income, talk to the hosptial about help ith transport to appointments
- think about renting nearer to amenities, sell up, clear the slate

How do any of those sound?

Richey_

A loan is not likely to be the solution as this will make you incur interest again.

If the accounts are all defaulted and on payment plans then the interest will be frozen so you are better off leaving the accounts where they are and just paying extra when you can.

Have you considered moving to a part of the country where your 60k equity may possibly buy somewhere outright so then every penny can go on loan repayments?

Nebulous2

Buy a cheap car? Doesn't motability give a grant to people who lose their car? Ask them for advice, but it may be enough to buy a banger.

DCFC79

JanNB wrote: »

I don't have an IVA, I have defaults. I can't sell the house as it's been adapted for my medical condition.

Maybe so but you can sell it and buy another property with the money and get it adapted or find a property that's already been adapted.

daytona0

The walking 20 metres part of your post....

That's throwing me a bit.

Seems really harsh if they have reduced the walking distance from 50 meters to 20 meters, but there must surely be some method to their madness? Maybe they feel that 20 meters is the distance required for someone to walk in order to work?

Surely, though, your medical condition would render you disabled and unable to work irrespective of what distance you could walk? That's what I'm not understanding... That should have been the case prior to the reduction as well!

AndyPix

Why on earth would you want to lease a car and have another monthly expense ??


A while back I picked up a Mondeo for £500 that lasted me 3 years without missing a trick .