Secured loans

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Jimmyjd
Jimmyjd Posts: 1 Newbie
in Loans
I have 4 credit card amounting to £24,000

I pay £1,200 per month across all card which covers roughly the minimum payment so mainly interest.

I have used the comparison site fluent money who have offered me a loan in principle but before they do a search on my credit file I wanted it ask what other option might be good to look into?

Regards,

J

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Increasing payments, 0% BT cards, lower rate cards, earning more, cutting costs, selling things or targeting the highest rate debt are a few other strategies.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Never a good idea to transfer unsecured debt to secured.
    If you don't pay back you could be homeless.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    edited 17 January 2020 at 5:58AM
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    Jimmyjd wrote: »
    I have 4 credit card amounting to £24,000

    I pay £1,200 per month across all card which covers roughly the minimum payment so mainly interest.

    I have used the comparison site fluent money who have offered me a loan in principle but before they do a search on my credit file I wanted it ask what other option might be good to look into?

    Regards,

    J
    The amount of the interest being charged on these cards seems rather high. Whatever APR's are being charged on these cards? To be paying a minimum payment of £1200 on a balance of £24000 is way over the top as it equates to 5% of the balance. This surely cannot all be interest as this would put the average APR at around 60% over all 4 cards.

    As has already been said transferring unsecured debt to secured debt is not generally considered a good idea and cannot be recommended. Of course this company you have mentioned will offer you a loan in principal. Note that they say arrears, defaults and ccj's welcome. That should be ringing some very loud alarm bells. Why do you think that is? Because if you get into arrears with them next month you find yourself homeless, that's why. Avoid at all costs.
  • RelievedSheff
    RelievedSheff Posts: 11,328 Forumite
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    Transferring the balances to a 0% balance transfer card or cards would be a better option if at all possible.

    If you are only making the minimum payments you also need to watch out for falling into persistent debt with the card providers.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    edited 17 January 2020 at 9:23AM
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    Jimmyjd wrote: »
    I have 4 credit card amounting to £24,000

    I pay £1,200 per month across all card which covers roughly the minimum payment so mainly interest.

    I have used the comparison site fluent money who have offered me a loan in principle but before they do a search on my credit file I wanted it ask what other option might be good to look into?

    Regards,

    J

    Whats the reason for the debt ?

    If you go this route or any route to resolve the debt, the reason for the debt can't happen again otherwise it will be a waste of time.

    Reduce your outgoings or increase your income could be a start.
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    And if non of the above is doable, there are debt solutions you could take advantage of instead, in fact anything is better than consolidation, especially via a secured loan, remember the interest rate can be variable with these types of loans.

    Debt management plan, IVA, are just two options available, obviously dependent on your circumstances.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it 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.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • AndyPix
    AndyPix Posts: 4,847 Forumite
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    Does no one else suspect this is a thinly veiled plug for a dubious broker site ??
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