Debt plan that covers secured debts?

yelf

Ive just seen that a DMP and IVA cant cover secured loans. Is there anything that does cover secured loans? Not the main mortgage but smaller personal secured loans?

fatbelly

A personal loan is generally taken to mean an unsecured loan.

If you have taken a secured loan then you have agreed that the item you have agreed to secure it against (usually property but not necessarily) can be taken into the creditor's possession if there is default on the loan terms.

One way out is to take out a personal loan and pay off the secured debt. I'm afraid secured debts are not qualifying debt in insolvency

sourcrates

As per fatbelly`s post above, secured loans are generally secured on an asset such as a property, so defaulting on such a loan would mean forfeiture of the asset to satisfy the debt.

This is why secured lending is classed as a priority debt, as non payment will result in the loss of your home.

EssexHebridean

Might it help to put together your SOA and post it here so we can see if we can offer any suggestions for savings that you might be able to make to ensure that you can meet the payments to any secured loans you have? 

fatbelly

Secured loans, in the sense of homeowner loans, are best thought of as a second mortgage, just one with a lender who charges more interest and is likely to be less accommodating if you can't pay. They are now regulated much better than in the pre-2010 days when celebs like Carol Vorderman used to advertise them on prime time tv and suggest people use them for fancy holidays etc

CocoBliss

Hi I have a secured loan that I’m struggling to pay my credit rating is rubbish so can’t remortgage or get a personal loan . The only way out of this is to sell my house and rent which is something I didn’t want to do does anybody have any other ideas? 

sourcrates

CocoBliss said:

Hi I have a secured loan that I’m struggling to pay my credit rating is rubbish so can’t remortgage or get a personal loan . The only way out of this is to sell my house and rent which is something I didn’t want to do does anybody have any other ideas? 

The only other alternative is to not pay your unsecured credit debts, if you have them, or cut back your expenditure elsewhere, there is no magic solution unfortunately, secured lending is a priority payment for a reason.

DisabledDan

CocoBliss said:

Hi I have a secured loan that I’m struggling to pay my credit rating is rubbish so can’t remortgage or get a personal loan . The only way out of this is to sell my house and rent which is something I didn’t want to do does anybody have any other ideas? 

There is another option, move out of your house into the cheapest place you can find on Spareroom dot com, then rent out your home making sure that you comply with all the Landlord obligations, especially protecting any deposit you take by one of the three approved Government schemes.

I did not do this and it was the biggest mistake of my life, we had a lot of military to used to rent houses the size of mine for £2500 a month which well covered my mortgage.  Instead I sold it, paid off many tens of thousands off my ex's spending, rented a house and paid off my Landlords mortgage.

I am guessing you have other debt that is not secured, which means you can stop paying the unsecured debt and maybe put that into a DMP.  You do need permission from your lender to rent it out but I think they would see that as a good thing and you could file a formal complaint if they won't grant permission.

You could post an SOA on here or on a new thread and we can tell you where you are spending too much.

https://www.stoozing.com/soa.php

There are ways to improve your income doing gigs on the side, training for a better job, asking your employer for more hours or a rise.

TheAble

Keep it simple would be my advice. Prioritise the secured debt above all else.