Ifa fee

DCFC79

I also recommend you post over on the advice to post over on the dfw board.


How did the debt build up ?


Pointless in turning it into a secured loan if at some point in the future it builds up again plus your home is secured so you would run the risk of losing your home.

Clive_Woody

I would suggest talking with one of the free debt charities before you progress further down this route as potentially you could lose your house if things go pear shaped (e.g. job loss, etc).

Unsecured debt can be chased through the courts but in the end there isn't a lot they can do but secured debt opens other routes for debt recovery.

sourcrates

Never, ever borrow more money to repay existing borrowing, the people you spoke to were salesman, not advisors, they want you to take out the loan so they can make money from you.
Debt solutions exist for a reason, to repay problem debt, consolidation loans just line the pockets of some faceless bank.

Post a statement of affairs on debt free wannabe, and we can give you correct advice on how to deal with your debts.

jmb1

Ok guys. Just to clarify one pertinent thing I've not mentioned, as I get the impression the assumption is of wholly overstretched frivolous credit spending (no doubt because this is what the usual cause is). I am at fault yes, but my fault is in fact not (solely) overspending (it is certainly still partly) or buying stuff I can't afford on credit cards, but in fact the majority is down to not properly budgeting for self assessment tax ie 30% of all income: I'm self employed with a varying monthly income and holding hands up I have been hopeless with saving the correct amount for tax bills. Finding myself short when it comes to tax bill time I have resorted to using the credit cards as get out of jail cards with every good intention of paying them off, but with the tempting luxury of 0% and minimum payments, and more spendable income, I just haven't.

I haven't further used the cards after that but simply have kept transferring their balance, paying fees and shuffling the debt.

So I'm in the current panic because I've realised I've 1. Run out of card providers and 2. Realised I simply can't go on living with this ever increasing debt hanging over me. I realise I've got to clear the debt, and then work closely with my accountant here on in, budgeting properly and saving correctly for tax bills.

So there we are. Just in case this fact has any bearing on my ifa's, and your advice. But yes, debt is debt and the spiral is still a spiral. I need help and appreciate the suggesting so far re debt wannabe and debt charity advice. I'll also discuss what's been said here with my ifa to see what he says about these serious reservations. Common sense dictates that they would of course push a financial product where they have a large fee incentive. I naively didn't consider they might give inappropriate advice for that purpose though. But I guess they wouldn't give lots of discussions and advice if the best option was in fact not going to earn them anything at the end...

[Deleted User]

I strongly advise that you contact the debt charity Business Debtline before taking things any further with this "IFA".

TriathNanEilean

Just to make it a little clearer for OP - a couple of posters have been less than impressed with the "IFA"'s advice. I'd go so far as to say I doubt they are an IFA at all - that title isn't a vague description. IFAs are regulated by the FCA in the UK and must have appropriate qualifications and registration.


Given the advice (a secured loan) and the fact that they don't seem to have made their fees clear (in writing) at the start, this doesn't sound like an IFA. Beware people who use weasel words like: "we are reputable Financial Advisors who are Independent ... etc". And run a mile usually.


The Debt Free Wannabe forum and/or a debt charity is the best place to go for you, honestly. Don't rush into anything.

DrEskimo

There is very little for you to gain by taking the advice given to you, and potentially a substantial amount to lose....

I would echo the general consensus here and politely decline the advice given, do not bother having a follow-up appointment (it would be a waste of your time) and look to identify where you can make cuts in your spending, devise a budget and overpay on your loans to pay them down quicker. As a start, I would look to get a valuation on your car (try as many places as possible) and compare that to the settlement figure on your PCP. Then look to buy a much cheaper car. This step alone will likely reduce the debt substantially.

You can't get out of debt by taking on more debt. It is simply illogical.