Secured Debt Consolidation?

Joker954235

Hi Sorry only my second post on her.
Basically my wife and i have around £38K of debt.
At present we are paying out nearly £950 a month on these I pay all our bills etc as my wife is a carer and get around £550 per month, I earn around £43.5K per annum.
Because of the level of debt we have my credit rating is now poor based on that even though i've not missed any payments, but our current lender nationwide declined our debt consolidation request.
I have looked online and via a broker have managed to get an AIP via United Trust Bank fixed for 5 years at 4.7% meaning a payment of around £300.00 per month. There are no early repayment charges. However this will allow me to save around £6K per year to then pay off the loan hopefully in those 5 years. The current term is set at 16 years.
I don't know what other options we have?

This is what my monthly outgoings would look like if i were to accept?

Nationwide BS Mortgage £657.26
Savings Savings or Investments £500.00
United Trust Bank (Not Happened Yet) Loans £313.00
Shopping Groceries £300.00
Council Tax Taxes £142.00
Npower Elec & Gas Utilities £106.00
Isaac ISA Savings or Investments £100.00
Petrol Transportation £80.00
Camera Loans £77.17
Virgin Media TV, Phone & BB Utilities £49.00
Sky Utilities £49.00
Watch Loans £41.25
Son Horse Riding (RDA) Children £40.00
EE Phone Utilities £38.00
British Gas Service Insurance £30.95
Affinity Water Utilities £20.00
Admiral Home Insurance Insurance £18.00
Motorcycle Bennetts Insurance £15.99
Credit Expert Utilities £14.99
TV License Utilities £12.54
Spotify Entertainment £9.99
Netflix Entertainment £7.00
Microsoft Entertainment £5.99
Nest Entertainment £5.00
WWF Gifts and Charity £4.00

It would then leave us with around £120.00 per week which is ample.

Does this sound like a good idea?

Herzlos

I'd drop the Credit Expert and at least 2 of the entertainment packages, and look at downgrading the Sky, too. That'll free you up at least £30/month right there.

Sounds like the consolidation will really cut down your outgoings, but you need to be very careful not to build up the debt again on the various channels. Lots of consolidation ends up making things worse (I'm in that boat currently).

So consolidate, and use the savings there to overpay. Cut your outgoings as far as you can, and use those savings to overpay.

Then once it's paid off, you'll have an awful lot more free cash with which to carefully treat yourself

glentoran99

Never a good idea to change unsecured debt to secured debt, and I think you'll struggle to find anyone on here who has tried it advising any kind of consolidation.

DCFC79

You have Sky Utilies and Virgin Media phone etc priced at £49 so £98 a month. What is Sky utilities anyway ? Is this just Sky, cancel the Sky and you can save even more.


You can save £95 if you cancel the r entertainments, the wwf gifts and charity.

What if god forbid say you were to injure yourself in some way meaning you couldnt work, how would you make these payments on the secured loan ?

Just a thought but what does the BG gas service insurance provide you, is this the gas service ? What else is covered ? Eg does it cover plumbing etc, would your home insurer provide equal cover for a cheaper price.

Pixie5740

Forget consolidating especially if that involves turning unsecured debt into debt secured against your home.

Complete a full and accurate SOA and then take yourself over to the Debt Free Wannanbe board.

http://www.stoozing.com/calculator/soa.php

Clive_Woody

As others mention I would look at cancelling what "unnecessary" services you can (or at least downgrade), check you have the cheapest insurance quotes possible then start throwing all spare cash at the debt with the highest interest.

Avoid moving to secured borrowing.

Candyapple

You said your wife is a carer earning £550pm - can she not get a better paying job? Or increase hours?

Can you get a better paying job / ask for a raise / work overtime?

£38k is no small amount, how did you manage to incur such debt? Do you have anything to sell from it? And more importantly, what's to stop you from ever running up such high amounts again?


Nationwide BS Mortgage £657.26
Savings Savings or Investments £500.00 Put this towards clearing your debts off first and then start saving once you are debt free
United Trust Bank (Not Happened Yet) Loans £313.00
Shopping Groceries £300.00
Council Tax Taxes £142.00
Npower Elec & Gas Utilities £106.00
Isaac ISA Savings or Investments £100.00
Petrol Transportation £80.00
Camera Loans £77.17 What is this for?
Virgin Media TV, Phone & BB Utilities £49.00 Find out if you can get this lowered and/or drop the TV part of the package
Sky Utilities £49.00 What is this for?
Watch Loans £41.25 What is this for?
Son Horse Riding (RDA) Children £40.00
EE Phone Utilities £38.00 Can you downgrade your current package(s)?
British Gas Service Insurance £30.95 What is this for?
Affinity Water Utilities £20.00
Admiral Home Insurance Insurance £18.00
Motorcycle Bennetts Insurance £15.99
Credit Expert Utilities £14.99 Cancel this immediately,
you can access your reports for free
TV License Utilities £12.54
Spotify Entertainment £9.99 Cancel this immediately
Netflix Entertainment £7.00 Cancel this immediately
Microsoft Entertainment £5.99 Cancel this immediately
Nest Entertainment £5.00 Cancel this immediately
WWF Gifts and Charity £4.00 Cancel this immediately

The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk