Secured Loan

SillyBilly31

Hey!

Trying to consolidate debts as we are drowning at the minute. The only options seem to be secured loans. It’s a minefield as to which broker/product to use. Any suggestions tried and tested? Secured seems to be last resort. HELP!!

MorningcoffeeIV

Absolutely don't consolidate with a secured loan.

(Fortunately, you almost certainly won't get one if your debts are as extensive as you imply.)

Go to the DFW board for help.

QrizB

Trying to consolidate debts as we are drowning at the minute.

Don't do it.

Any suggestions tried and tested?

As above, go to the Debt-Free Wannabe (DFW) board here and get some proper help.

Do you have a Statement of Affairs you could share on DFW? If not, there's an online tool here that can help you put one together:

https://www.lemonfool.co.uk/financecalculators/soa.php

fatbelly

Honestly do not do it. Unsecured debt and secured debt is chalk and cheese. One is not that important. The other can see you losing your house. Post on debt-free wannabe

MEM62

The only options seem to be secured loans.

Seriously, that is not an option. Never turn unsecured debt into secured debt. It is madness.

If you cannot afford the contracted payments on unsecured debt, you pay what you can afford. If you cannot afford the contracted payment on secured debts, the lender comes after your asset.

You need proper advice. Time to speak with one of the debt charities. .

CliveOfIndia

To reiterate what others have said - don't.

Default on unsecured debt, that's your credit file trashed. Not ideal, but not the end of the world in the grand scheme of things. Default on a loan secured against your house, you'll end up sleeping in a cardboard box on the canal towpath.

You'd probably struggle to find a loan at a reasonable rate anyway. Since a lender cannot force you to use the loan to pay off your existing debts, they have to take the view that the loan would be in addition to - not instead of - your existing debt. This will be factored into their affordability calculations, meaning you may not be offered the loan at all - or, if you are, the APR is likely to be extremely high to account for the increased risk.

As others have said, either post an SOA on the Debt-Free Wannabe board, or else speak to one of the debt charities or CAB for free, impartial advice.

ManyWays

And another one saying Don't Do This.

You almost certainly have much better options. Pop over the the DFW board and talk about your situation there.

Shadyocuk

Consolidating debts with a secured loan was one of the worst mistakes of my life. Dont do it.

somewhat_confused

I came here to post the same question as he OP - I can't find anyone who would offer a secured loan without charging a min. of 3k as an admin fee.

I currently have 30k+ of credit card debt which is costing me almost 1k a month.

I can't see any option other then a secured loan to reduce this to a manageable level.

help!

The appeal of a secured loan is that it will reduce this closer to £200 a month - which leaves me with quite a bit of headroom to save and pay down the loan more quickly.

MorningcoffeeIV

https://forums.moneysavingexpert.com/discussion/comment/82050506#Comment_82050506

DFW boards are the option you're looking for.

retiredbanker1

https://forums.moneysavingexpert.com/discussion/comment/82050506#Comment_82050506

£200 per month but over how long?? Say 10 years for argument sake - what happens in that timescale if you need a new car, holiday , new piece of tech etc etc. You start borrowing again so in 10 years time you will have paid back a miniscule amount of capital but find yourself in the same position as today but with double the debt!

Please don't do it go to a debt charity and seek some help.