Secured loan

Emma_137

Does anyone have any advise around secured loans? I know these should be avoided but it would drastically reduce mine and my partners outgoings for debts by hundreds a month. We are planning on starting a family so with me going mat leave it would mean we couldn’t pay our bills with just one income (I’m 35 this year so I am not willing to take the risk waiting to start a family)

We are paying off as much as we can in the mean time but that would take years. And also reducing our other outgoings eg cancelling sky etc.

We have average credit scores but our income to debt ratio is high so can’t get any cheaper unsecured loans.

[Deleted User]

Don't turn unsecured debt into secured. And ignore your credit scores.

Post on the DFW board for detailed advice on how best to get rid of the debt 

Ebe_Scrooge

As ZX81 says, you need to reassess your budget.  Borrowing your way out of debt is only going to end one way.  You say your debt/income ratio is already high - that's only going to get worse when your income reduces.

Picture the worst-case scenario - you get a loan secured against the house, you bring a new baby home, you cannot afford your loan repayments, your house is repossessed.  Is that really the start in life you want for your child?

Sorry if this sounds harsh or condescending.  It's not intended as such - more a case of being realistic.  Please, please don't go down this route.

[Deleted User]

You can't afford to have a kid and it sounds like you will make yourself destitute trying, so what life is that for the kid with parents scraping by and fearing every bill that comes through the door. Consolidation doesn't work as it doesn't address the underlying reasons why you needed it and what's to stop you just running it all up again as soon as your other credit sources are cleared? If there was ever a reason to stop and rethink things about whether or not to have a baby it is "I want to have one regardless of how bad the life it will be brought into will be" - same logic as starting married life crippled with debt due to wanting a huge wedding, except the costs will be ongoing for 18+ years

MattMattMattUK

Living beyond your means is a bad ides at the best of times, it is even worse if you are going to start a family. As others have said head over to the DFW board and get your debts and spending under control. 

DCFC79

You really need to sit down and look at your spending, certain things you can do, are you on the best energy deal although you need to stay where you are which is annoying for you, cheapest for insurance, any streaming services.

As suggested post over on dfw board.

A secured loan wont solve the issue.
Have you looked into what a secured loan involves ?
Are you happy to put your home at risk ?

Sncjw

Definitely go on dfw board and post a statement of affairs. 

bargainbetty

Another one voting for the DFW boards 0 they are brilliant about helping you manage your finances. 

Could you both look at taking on second jobs for a year or so? Bar work, deliveries, evening work, remote call centre work, anything to bring in extra funds? I've worked two jobs on several occasions to fund something I needed/wanted and while it can be exhausting, it does also stop you spending money elsewhere (you are busy or tired). 

Honestly, converting unsecured debt into secured debt is not a great idea. You risk your home. You would also need to have the equity in the property to do it, as you cannot secure a debt on a property that is already the security for a high LTV mortgage. 

My cousin had her first child at 41 and another friend had hers at 40. Your biological clock might be ticking, but it hasn't wound down.