Given wrong advise - massive mistake
Hey - I've posted before about this.
A year ago we took out a £29,500 secured loan to consolidate unsecured debt (credit cards, catalogues and even my bloody mother who paid for my new boiler, she sure wasn't charging interest, majority of the debt was 0%). I am now completely aware what a monumental mistake this was. I was suffering with some mental health problems and was pregnant at the time - no excuse but I was not my usual self.
We took this out on 'advise' from a financial planning company who I had worked with previously on life insurance. He was very full on, for example the day he was first due to come to our house to meet I actually phoned him and tried to cancel the appt as we didnt think the loan would be a good idea, but he insisted he just come for a chat anyway. He used to call me at 8.45am as I was on my way to work. Even after we met we didn't agree straight away, we had reservations - but he kept calling and visited again. Short of it is we went with it and consolidated our debt - mthly payments remained around the same as they were anyway so didn't save us money - he sold it as 'tidying everything up'.
I just got a settlement figure and its £3k more than we even borrowed, for every £370 I pay each mth we only pay off £20 - I knew the term of 25 years of the loan would pay back a extortionate amount but we never planned to keep it for the full term. But in 1 year to see those figures!
I am so angry - with myself and with him and his company. I hate being made a fool of. He's got his commission and off he's toddled.
Just musing if there is anything at all I can do. I don't have any written correspondence between us, it was all at my house and on the phone.
I feel i have no option but to absorb this onto my upcoming remortgage - i know not a good idea but i cannot pay that out for another 25 years.
Thanks for any thoughts.
A year ago we took out a £29,500 secured loan to consolidate unsecured debt (credit cards, catalogues and even my bloody mother who paid for my new boiler, she sure wasn't charging interest, majority of the debt was 0%). I am now completely aware what a monumental mistake this was. I was suffering with some mental health problems and was pregnant at the time - no excuse but I was not my usual self.
We took this out on 'advise' from a financial planning company who I had worked with previously on life insurance. He was very full on, for example the day he was first due to come to our house to meet I actually phoned him and tried to cancel the appt as we didnt think the loan would be a good idea, but he insisted he just come for a chat anyway. He used to call me at 8.45am as I was on my way to work. Even after we met we didn't agree straight away, we had reservations - but he kept calling and visited again. Short of it is we went with it and consolidated our debt - mthly payments remained around the same as they were anyway so didn't save us money - he sold it as 'tidying everything up'.
I just got a settlement figure and its £3k more than we even borrowed, for every £370 I pay each mth we only pay off £20 - I knew the term of 25 years of the loan would pay back a extortionate amount but we never planned to keep it for the full term. But in 1 year to see those figures!
I am so angry - with myself and with him and his company. I hate being made a fool of. He's got his commission and off he's toddled.
Just musing if there is anything at all I can do. I don't have any written correspondence between us, it was all at my house and on the phone.
I feel i have no option but to absorb this onto my upcoming remortgage - i know not a good idea but i cannot pay that out for another 25 years.
Thanks for any thoughts.
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Comments
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No. It was your choice to take the loan. You now need to focus on clearing the loan.
What rate are you currently paying? What are your incomes?0 -
Check the fees for early termination....
Will you get a decent rate with 29.5k of debt already?Censorship Reigns Supreme in Troll City...0 -
Deleted_User wrote: »No. It was your choice to take the loan.
But is wasn't an independent choice, the OP was advised this loan was best for them.
I thought if you paid for financial advice or the person giving it earns commission they are not allowed to give 'bad' advise.0 -
15.8% on the loan, variable rate. Salaries combined £59,000. I've done a SOA and we can't overpay on it. I just feel it's not chipping away at it, £20 a month and it's gone up from what I was lent which I wasnt in understanding of.
There is a £120 discharge fee, that was added into the settlement figure. It can be overpaid or repaid early.0 -
iammumtoone wrote: »But is wasn't an independent choice, the OP was advised this loan was best for them.
I thought if you paid for financial advice or the person giving it earns commission they are not allowed to give 'bad' advise.
This is what annoys me, how can he run a financial planning company and give advise like this out. One quick visit to MSE has made clear that it is not good advise, only wish I had done that first instead of down the line.0 -
Have you considered consolidating small amounts at a lower rate?
You won't shift it all, but a small loan or a 0% money transfer card could ease the pressure.0 -
Deleted_User wrote: »Have you considered consolidating small amounts at a lower rate?
You won't shift it all, but a small loan or a 0% money transfer card could ease the pressure.
Oh no I hadn't considered that, I will take a look thanks.0 -
You may want to post your SOA - either here or over on the DFW board.
That's a fair salary to be tied up with no room to overpay anything.
I would like to think that the good people on the forum would be able to find savings you can make to free up some disposable income for overpayments or another type of solution.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy 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.
If you can't be the best -
Just be better than you were yesterday.0 -
You may want to post your SOA - either here or over on the DFW board.
That's a fair salary to be tied up with no room to overpay anything.
I would like to think that the good people on the forum would be able to find savings you can make to free up some disposable income for overpayments or another type of solution.
Thank you, yes had some wonderful help on my SOA on the DFW board a few months ago. Issues are we now have credit card debt built back up (0% so just plan to chip away at it - awful I know but we had no choice as I was on unplanned for (financially) maternity leave) And childcare costs which are always such a massive financial commitment. So my detailed SOA leaves no wriggle room for a while at least.0 -
Have you raised a complaint with the financial adviser?
https://www.moneyadviceservice.org.uk/en/articles/financial-mis-selling-what-to-do-if-you-think-its-affected-you0
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