Dmp v secured loan

TryingToBeFree

Hi all,
Hoping you money saving experts will be able to give me a little advice.
Im currently on a DMP, balance is just under £25k. I have a car on finance, balance of around £11-12k and a credit card on £500. (I try not to utilise the whole £500)
I am now in a position where I have no mortgage.
I pay my credit card in full each month, I pay £357 to DMP and £251 for my car. I have just reduced my DMP to accommodate my car.

Now, would I be better getting a secured loan (I have never missed any DMP or car payments) and have paid around £13k off my DMP in the last 2 years. My credit rating isn’t great, but not sure if I should just carry on the way I’m going, or get a secured loan and reduce the monthly payments from around £600 per month.

Any advice would be greatly appreciated.

I earn around £36k if that helps

Bad financial decisions with my now ex partner were to blame for the debt in the first place. And being naive having everything in my name

Thanks in advance

TryingToBeFree

I also need to do quite a lot of work on my house, which I’d like to accommodate within the secured loan

[Deleted User]

You'll struggle to get a loan whilst on a DMP and with such high existing debts.

Keep paying as much as you can to your existing debts, then once that's cleared, you can start saving for the home improvements.

boo_star

I suspect that your credit file is in poor shape as a result of your DMP and you'll be asked to repay at an astronomical interest rate if you even get approved.

TryingToBeFree

Thank you - I’m assuming a ‘re-mortage’ Is only applicable when you have a mortgage to start off with - if it’s paid off, it would just be a loan - is that right?

TryingToBeFree

Thanks - my DMP is due to end in 2025 with seems a million years away!

MovingForwards

If you post on the mortgage board the brokers can offer some information but you would need to add a few details such as current salary, employed / self employed, and approx value of your home.

It would be an adverse mortgage lender.

Louoffofsparkle

Why do you have such an expensive car? Surely it would make sense to use the money for that to pay your dmp off much quicker?
You want to take on more debt while struggling to repay what you owe already?

[Deleted User]

TryingToBeFree wrote: »

Thank you - I’m assuming a ‘re-mortage’ Is only applicable when you have a mortgage to start off with - if it’s paid off, it would just be a loan - is that right?

It would still be a mortgage.

TryingToBeFree

Because of my credit, it’s not a massively expensive car - I bought a cheaper car in the past and it caused me nothing but problems, I had to spend a fortune on it. The credit amount is quite a bit higher than the price of the car unfortunately

TryingToBeFree

Can’t figure out how to quote messages to reply directly - Louoffofsparkle - I’m not struggling to repay what I owe - I’m on top of it completely.