Given wrong advise - massive mistake

BrassicWoman

iammumtoone wrote: »

But is wasn't an independent choice, the OP was advised this loan was best for them.

I thought if you paid for financial advice or the person giving it earns commission they are not allowed to give 'bad' advise.

But how many people do we see here looking for "one easy payment" and would think anything that gave them that was great advice? It's all subjective.

I think the real problem is only being able to pay £370 a month off a joint salary of £59k. I'd expect to see twice that, when over £3k is landing in the hand. The lifestyle seems too extravagent for the income.

BrassicWoman

Grazely, I've had a wee look at your posting history. I think you have tried an SOA and found it tricky to stick to the lower budget; and I think you are panicking and looking for a way out now.

There are a few ways.
- Up your income
- lower your spending
- downsize the house
- run on one car
- debt management plan

But ALL of these involve you and the family working as a team.

Are they with you, or are you trying to change this on your own?

How radical are you prepared to be?

And can you actually stop spending? Your SOA post suggests you ran up and extra 8k on a credit card due to maternity leave - with housing etc costs already paid and a salary coming in, that is MASSIVE.

Do you know how to shop, cook, dress like a thrifty person?

Do you want to learn?

Dobbibill

Grazeley wrote: »

Thank you, yes had some wonderful help on my SOA on the DFW board a few months ago. Issues are we now have credit card debt built back up (0% so just plan to chip away at it - awful I know but we had no choice as I was on unplanned for (financially) maternity leave) And childcare costs which are always such a massive financial commitment. So my detailed SOA leaves no wriggle room for a while at least.

I looked at your SOA post from back in March.

https://forums.moneysavingexpert.com/discussion/5620146

Unless this has changed dramatically, you are going to remain in this vicious circle.

If you haven't had chance to change it yet then I would suggest doing so ASAP - while the children are young is the best time to make cut backs, they are unaware of trends, fashion or the latest fad - this normally changes as they get older

Grazeley

Oh yes, my SOA has changed since March, I took on the advice.

I'll re-do my SOA and post it :-)

PeacefulWaters

"Advice" can mean the best product for your needs from their product range.

enthusiasticsaver

Debt consolidation loans should come with a massive health warning. Unfortunately the advisor will not be held liable as although almost always they compound problems by not changing the spending behaviour of the debtor and delaying them dealing with their overspending it could be argued that the advisor was not to know you were going to continue to run up credit card debts once the debt was paid off through the secured loan. What is more galling though is the fact that the interest rate is not at all advantageous and if some of the debt was at 0% this is actually a much more expensive way to clear the debt.

I think I would try writing to the financial advisor to that effect pointing out the rate is actually more expensive than the debts you repaid with the loan but I do not hold out much hope that legally you have a leg to stand on. You presumably signed the loan agreement so the onus is on you to check these things out. Expensive lesson but all you can do is move forward now.

As others have said posting an soa would be a good start. You will not get refinancing for that amount on 0% so if you are able to make lump sum repayments that is where I would start by doing balance or money transfers to get rid of it. Not easy though if you already have other credit card debt. There may also be penalties for early repayment. I am staggered that £29500 is going to cost you £111000 over the 25 year period and agree getting rid of it should be a priority.

Malthusian

If this was an FCA-regulated adviser then a complaint to them, followed by a complaint to the Financial Ombudsman if their final response is unsatisfactory, would seem to have a very good chance of redress being awarded. I'm surprised at the number of posters saying "you don't have a leg to stand on".