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Debt consolidation loan - ue for diff. debts??
If someone had an agreement in principle for, say, a £10k secured loan to pay of a single unsecured personal loan at a lower rate of interest, could they use this to pay off £8k of that loan and keep £2k to pay off an overdraft? In reality, would the lender know, find out or even care, so long as repayments happen as agreed?
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they don't. that's why these things so often don't help when it comes to dealing with debt. a person may have good intentions and, assuming the bank agrees to give them a loan (many won't), then the person gets the loan, uses most of it against debts but then takes a "spare" £1k to buy something nice and shiny. or to gamble with. or book a holiday.
only time it might possibly be noticed if, for instance, you got a loan from Barclays to pay your Barclays overdraft or maybe even to clear your Barclaycard as all of those are linked on their systems.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung2 -
and of course moving the debt that they do move, to a more dangerous place0
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But it`s never a lower rate of interest, as secured loans have variable interest rates, and you pay them over a longer period of time, so that 10k will likely become 20k, and you risk the roof over your head for no reason, very bad idea.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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Thanks for this reply Brie. Much appreciated 👍❤️Brie said:they don't. that's why these things so often don't help when it comes to dealing with debt. a person may have good intentions and, assuming the bank agrees to give them a loan (many won't), then the person gets the loan, uses most of it against debts but then takes a "spare" £1k to buy something nice and shiny. or to gamble with. or book a holiday.
only time it might possibly be noticed if, for instance, you got a loan from Barclays to pay your Barclays overdraft or maybe even to clear your Barclaycard as all of those are linked on their systems.0 -
Don't you think it's worrying that you're drumming up a hypothetical already for how to misrepresent what "someone" would be using the loan for, while simultaneously considering taking on secured debt to clear unsecured debt?0
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