Secured Loans: cheapest lending of last resort
Comments
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hi i am looking for some advice.
approx 15 months ago i had entered into a secured loan to pay off some debts,
the amount of the loan i got was £25,500
after paying the loan for 15mths at £335 per month, i phoned last week asked for a settlement figure and it was £29,900.
would this be normal.
i did have adverse credit when i took out the loan but i did not realise i was involved in this outrageous rate of 14.9%.
at the time this seemed like a good option but recently it is geting me down, and i am unsure if i am better off to try and get a better rate secured loan to clear this, but i have been told if i get a better rate secured loan then i will end up paying fees for the 1st 2 years and will be in more debt than i am in.
can anyone please advise how to get out of sticky outrageous loan rates if there is a way.
thx.
Doing some rough calcs you have paid off about £600 of the actual capital, so they must be charging a fairly pricey fee to settle early. I would check your terms and conditions.
If there was no fee (apart from maybe a couple of months interest) then I would expect a settle figure of about £25000. You can also request a breakdown of how they have calculated the settlement figure.0 -
Slightly off topic, but have you heard of certain companies that can help to write off an existing loan? I think it has to be before April 2008.0
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My sister is currently going through a divorce. Her ex has left her with mountain's of debt - mainly for concern is a secured loan for £35,000 in joint names. My sister, as part of the settlement is going to pay this of (she has inheritance due shortly). Is she better to pay it off in full or to continue payments and keep her capital. They want nearly £38,000 to settle in full! Any advice.0
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Hi there
For those that don't know such companies loan you a sum of money and then you repay this when you're salary is paid.
This is really just for emergency use. It is to this end o have used such companies before and though expensive are usually trouble free and easy enough to use.
That is until i used Wageday Advance Lts based in Keighley, West Yorks.
They first of all told verbally informed me of the wrong date the money would be paid.
No-one of seniority was available to discuss this with and i was just asked to write any complaints to them on paper.
However they verbally explained that it is ok to cancel the agreement and that though it is too late to stop the payment going through, once the delayed payment was made they would debit that money from my card with any interest payments or charges. I asked for this in writing which they have not done and in fact e-mailed me to explain it is going through and that it will be processed as a loan.
I am logging a complaint with the ombudsman and i will update you all with how the matter enfolds.
Dave Hargraves, Bolton0 -
Joe_Bloggs wrote: »I am confused.
If you take out or try to take out secured loan and have a mortgage them surely your existing mortgage lender has got to have a say in this.
In my view a mortgage is a secured loan based upon part or all of a property. If you are going to take out loans that give other parties a claim on the principal asset then you are inviting a conflict if a disaster should happen.
PS I do not wish to borrow money, but to learn of the pitfalls and benefits of the different types of loans.
J_B.
A secured loan is a loan in which the borrower is required to pledge some assets like a car or property as collateral against the loan. The loan is thus secured against the collateral - in the event that the borrower defaults, the creditor takes possession of the assets used as collateral and may auction it to satisfy the loan.
Dear J_B. you want to learn of the pitfalls and benefits of the different types of loans. You can find all details about any types of loan on quickloansinfo.com0 -
Does anyone know anything about Freedom Finance or Nemo Personal Finance
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Have never heard of them before, that's normally a bad sign. I'd stick with known companies, either known for their cheap rates or for their secure banking.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Myself and my husband took out a secured loan a while back with Central Trust. I am NOT on the mortgage deeds but I am on the loan agreement with Central Trust - is this allowed?
I have recently left my husband who is now in arrears with this loan - which spells trouble - how will this affect me and how can I get my name removed from the loan ? Help!!!!!!!!
Lisa0 -
I am newbie. what is the difference between secured loans and short term loans?0
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Hi,
Wondering if anyone can advise, I have the chance to sell my house which i have been trying to do for 3 years. 4 years ago I signed up for a massive secured loan due to financial difficulty. Now the house price has dropped, I am financially absolutely broke and paying for a house and loan I don't live in and can't afford :-( Getting rid of the house would be an opportunity to almost start again but i have a deficit due to dropped house prices of around 15k on the secured loan..... if we sell the house at the reduced price it seems it is now worth.
This will have to be split between me and my ex.
Does anyone know how this will work and whether the loan company (first plus) will let us continue with what's left of the loan if unsecured.
thanks in advance0
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