Should I get a secured loan??

BeenAFool_3

I did not realise the Lloyds deal ws so bad. Being the fact it is an Non-Cancellable loan. What can I do with this then? Do I shop around for a better deal and then apply for that without the payment protection and then transfer the 17K across?

The problem with this is we owe £15,645 on the loan of £17,800. We also owe £3,973 on the payment protection.

My wife was told we must pay £17,300 to transfer this elsewhere??? So I guess I am stuck with this then.

I think this is what is draining my resources.

Any advice?

mrcow

To be honest with you, I'm a bit out of my depth on this, as I don't know what a 'non cancellable' loan is. I've never heard of one (sorry)

Maybe someone else can enlighten me? Please?

How long do you have left on the loan and what period was it over initially?

All I can say is that if I tap in £17300 on the Cahoot Flexible Loan calculator over 5 years (60 months) then it's coming up at £340 per month (so is Egg @6.9% APR), but that's without PPI. So you'd have £20400 to pay in total over the period of the loan (which is what you have to look at for a true comparison). Bear in mind though, you may not get this particular deal as it will depend on how they score you. Compare this to how much you currently have left to pay overall before you clear your existing Lloyds loan......that's how you can see if you'd be better off or not in the long run.

The trouble is, if you already have two credit card applications being processed at the moment, I'm not sure if this will impact any other loan/credit applications, as the searches will be within a short time frame?

It all depends on how happy you are with it I suppose, and how likely you are to be accepted for an alternative as it is such a large loan.

Did you take the PPI out because you actually wanted it? £4000 of PPI sounds massive to me (but then I personally think that PPI is an overpriced ripoff, others will no doubt disagree?). If you personally want this insurance, then that is a decision for you and your partner, but I also think that you can do better by shopping around for it.

I personally think it's well worth looking at all your options on all of your current debts. Any savings that can be made will all add up. What the general idea is, is that you SNOWBALL your debts. ie You put all saved money towards paying off your highest APR debt and then once that's paid off, put the extra money towards the next expensive debt. It's an extremely effective way of repaying debt in the most efficient and quickest way possible.

Try a site search on 'snowballing' and see what comes up?

Sorry BTW if I'm bombarding you with useless info!

BeenAFool_3

Far from it!! You have given me some very good information. You have also reassured me with some key points. I was hours away from doing a secured loan before coming here and listening to the advice!!

The problem has been I moved into my wife's flat initially and she was already paying everything. I did not take an interest, when we moved into a house the same thing happened.

Only in the last month have I looked at our accounts, I never looked at a statement or questioned anything for five years. I am lazy by nature so I let her sort it out.

Now I look at things I realise I can do a better job of sorting things. I set up an automated spreadsheet which works everything out and every Saturday I key in the weekly spending to keep a tally of everything.

Once I got a handle on things I've then noticed the debt and that is where I am now. Hopefully starting to solve that problem.

So it's a case of anything no matter how small will help me. I'm kind of enjoying learning about all of this and getting into now. I'm eager to learn and sort stuff out.

So thanks again for all the help!!

Malestrom

I think the Non-Cancellable part refers to the PPI, so in effect, even if the loan is settled early, the PPI is still payable in full. This is borne out in the settlement/transfer figures that the OP was given. This also means that you can't keep the loan running and simply cancel the PPI to save some money on the monthly repayments. I believe these types of loans are usually referred to as 'front-loaded'.