In a bit of a mess...a

Head_In_The_Sand

The clue is in my username Gary :-)

We have been careless, spent what we wanted and juggled with credit cards when the case ran out. That is an explanation and not a justification because we can!!!8217;t justify it and know we need to change our ways now, just not sure where to begin.

An IFA has recommended a loan to pay the default and consolidate the cards which will give us some headroom each month to build savings and chip away at the debt.

Pixie5740

The IFA is a buffoon. Is the IFA trying to sell you a loan?

Head_In_The_Sand

Thank you for the feedback Ebe, in no way am I intending to ignore the advice here, it!!!8217;s just that the situation is more complex than can be described in a few sentences and I have a lot of questions that I am trying to find answers too.

An IFA has recommended a secured loan to pay the default and consolidate the cards, but I am very unsure. It will give us a bit more headroom each month and cut down the despair we feel. Also help to reduce the sheer volume of mail we receive each month! But not totally accept that borrowing is the problem here and probably won!!!8217;t be helped by more borrowing.

Head_In_The_Sand

Yes the IFA is selling a loan. It would give us more money each month to pay towards the debt and and also mark the credit default as resolved. Both of which seem good?

Head_In_The_Sand

My previous message should say that I do accept the problem won’t be solved by more borrowing! Damn autocorrect!

Ebe_Scrooge

Head_In_The_Sand wrote: »

An IFA has recommended a secured loan to pay the default and consolidate the cards

This would be foolish in the extreme. As things stand, if you fail to pay your debts, the worst that's going to happen is your credit history will be trashed. If you switch the debts to a secured loan, you could lose the roof over your head. Yes, the interest rate may be lower - but that's because the lender has the certainty that they can take your house to pay the debts if you default.


Don't do it !!!

Pixie5740

Head_In_The_Sand wrote: »

Yes the IFA is selling a loan. It would give us more money each month to pay towards the debt and and also mark the credit default as resolved. Both of which seem good?

No, not really. You don't have a clue where your money is going now so all reducing the monthly payment will do is give you more money to fritter away until you resort to using your credit cards again and then try to consolidate a couple of years down the line and so the merry-go-round continues. You don't help an addict by giving them more drugs or an alcoholic by giving them more alcohol, same applies to those in debt.

Reducing your monthly payments won't necessarily work out cheaper either as the longer you take to repay the debt the more expensive it is.

smithers1981

Please ring step change or another debt charity. and speak to someone impartial, moving unscured debt to secured debt is sheer lunacy!

The IFA i would think is just a salesman, trying to sell you an expensive loan which could cost you your house.

You need to get head out the sand forget new carpets and borrowing more, spend less and throw every spare penny at reducing your debt.

[Deleted User]

A loan is not the answer here.

Speak to your current creditors/debtors and explain your situation and setup a payment plan.

Any extra cash you have at the end of the month, split it between the debts (or the largest debt) to pay off additional

Superscrooge

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However a household income of £80k easily puts you in the top 10% of household income so you shouldn't be running out of money halfway through the month.

You need to stop thinking that the answer to your problems is to take on more debt.

Look at all your monthly spending and cut out all the non-essentials. The money saved can then be used to pay off the debts with the highest interest rates.