Loan Advice

moran73

I currently have a secured loan on my property with £39k outstanding - now I need a further £10k to clear my wife and I's credit cards and a couple of unrelated amounts.

We have thought it through and can afford the repayments and want to start afresh having learned our lesson when it comes to plastic.

We have recently been offered a loan but the repayments were outside our budget. Would i be better off borrowing the £10k unsecured or applying for a secured loan that will be enough to take over our previous loan and give us the amount we need?

Our current loan company wouldn;t help us with the extra amount needed and neither would our Mortgage provider.

Where would be the best place to look?

I know there will be people who would advise against a loan but in our situation it is the only option - we have made arrangements with all our credit card providers and are paying off a reduced sum each month (except Citicard who refuse to reply in writing even though i asked for this and everyone complied with my wishes - they keep turning down my other). Also we got our first mortgage just before the prices went for the roof so even with a loan of this amount it would still be substantially lower than most mortgages around now.

I would really appreciate any advice on this.

Rafter

Moran,

If you are behind on your payments and negotiating you are very unlikely to get approved for an unsecured loan at a sensible rate unfortunately.

Your best option is to go and talk to citizens advice and arrange some sort of repayment plan on your credit cards below what you are currently making, if you still cannot afford these payments.

I would also suggest some of the money diet tips to make sure you are paying the minimum possible for your utility, phone, food and other bills to free up enough to start repaying your debt down to more manageable levels.

Good luck.

R.

MarkyMarkD

I have to agree with Rafter. If people are (bar one) accepting the payments agreed under the arrangement, your payments are only going to increase if you replace the card debts with a large secured loan at a penal rate (which will necessarily apply because of your credit history).

The best way really is to attack your outgoings (apart from debts) leaving you with some money to pay the debts off - eventually - and then to start afresh. Only once you've cleaned up your credit history substantially is there any point in remortgaging to clear off any residual unsecured debts, if at that stage it seems worthwhile to do so.