Unsecured Loan from the days of Northern Rock! 31 January 2022 at 11:26AM in Loans 8 replies 191 views

dunchorler7

Hi all,

I have an unsecured loan of approx £25000 which is the result of a Northern Rock 125% mortgage back in 2008. The interest rate has just gone up to 9.6%. 

I would desperately like to consolidate this £25k debt. Does anyone have any ideas of the best way to get rid of it?

I don't really have any extra income that I can put towards paying it off but have considered taking personal loans in the past to pay it off.

Any advice?

TIA. 

Duncan.

sammyjammy

You are very unlikely to be able to take out a new loan to pay this off, even if you could the rate is unlikely to be less than you are paying now, do you have other debt?  

dunchorler7

No - no other debt really other than the mortgage on my current property.

DrEskimo

Best bet is to head over to the Debt Free Wannabe forums and post your Statement of Affairs (SOA) there.

The kind forum members can help go over your outgoings and determine where costs can be cut to free up additional money to pay towards the debt.

Alternatively do you have anything you could sell to free up some money to pay towards it?

dunchorler7

Thanks - I'll head over to there now and have a look. 

Thrugelmir

Is your mortgage also on an interest only basis? 

Chris_English

Carrying a debt like this for decades has cost you a lot of money, I think that you maybe need a plan to pay it off. It's one thing kicking the can down the road on debt that costs you very little (my mortgages are all interest-only, but the most I'm paying is 1.5%), but is ruinously expensive when it's bearing this sort of interest rate.

If you fill in a complete statement of affairs on the other forum then hopefully you'll get some good advice about starting to pay it down.

dunchorler7

Can someone please tell me where I go on the other thread to complete a statement of affairs?

[Deleted User]

dunchorler7 said:

Can someone please tell me where I go on the other thread to complete a statement of affairs?

Use the link in the post above - or click here: https://www.lemonfool.co.uk/financecalculators/soa.php