Secured loan saga continues

Grazeley
Grazeley Posts: 72
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edited 25 April 2018 at 11:47AM in Mortgages & endowments
Thank you for helpful comments and advice.

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  • Grazeley
    Grazeley Posts: 72
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    Thank you, please let me know if I did something wrong,. Was posting in loans the thought maybe that wasnt the right place so posted here too just in case.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Grazeley wrote: »
    I am fully aware how this was totally wrong so please dont feel the need to remind me consolidation never works,

    Consolidation can work. Unfortunately human nature gets in the way all too often.
    Or pay some off with a 0% credit card or other lower interest rate option to pay it off.

    Stop meddling. Focus on your outgoings and not getting into further debt. Like a mortgage. Over time the unsecured debt will progressively reduce faster.
  • ACG
    ACG Posts: 23,677
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    lease dont feel the need to remind me consolidation never works,
    I wouldnt say that.
    I can think of an example where a couple had their annual income in loans and credit cards and were struggling to pay their bills. We did a secured loan and yes it is over a longer period, but they can actually make it to the end of the month without worrying if everything will be paid.

    Appreciate that does not help you, but I just wanted to try and balance it out. They are not for every situation, but they do have a place.

    If you are lowering your monthly repayments on the mortgage, like you say it gives you £200 a month to make a dent in to it. I do wonder how you have paid over £6500 and only reduced the balance by £100. You must be on a very high rate or on a very long term or a combination of the 2? Are you sure that is right?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tlc678910
    tlc678910 Posts: 982
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    edited 14 April 2018 at 7:55AM
    I wonder if the secured loan appears to have only gone down a tiny bit because you have been told the amount that you have left to pay including the interest that will be added. I think if you phone them and ask what would the settlement figure be iif you were to pay it off now you might find that you have actually paid a decent chunk off.
    Tlca

    Edit: sorry just seen the further info about the loan rate. The term is like a mortgage and it is secured on your property like a mortgage but the rate is much higher so yes if you can get it onto your mortgage you should.
  • getmore4less
    getmore4less Posts: 46,882
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    The loans and mortgage board are not the right places you need to be back on Debtfreewanabee

    this needs a full financial review of the income and outgoings before doing anything else.

    I see you had been there before a year ago.
    If I have read the previous thread right a summary is.

    http://forums.moneysavingexpert.com/showthread.php?t=5619194

    some point prior to March 17 a £30k secured loan 16% over 25 years.

    started a DFW thread in march but stopped.
    http://forums.moneysavingexpert.com/showthread.php?t=5620146

    another call for help in Oct
    http://forums.moneysavingexpert.com/showthread.php?t=5720662

    what you NEED to do is go back the DFW thread and update it with the true SOA based on the income/outgoings for year April 17-March 18.

    use this SOA formatted for MSE(much easier for people to read)
    http://www.stoozing.com/calculator/soa.php

    Go through your other threads and pick out the important bits and update(don't start a new one) your DFW thread with the most up to date information.
    Get everything into one place/thread.

    There will be a solution but it need the full picture of what's going on.

    Independent of the update


    Did you follow this up?
    http://forums.moneysavingexpert.com/showpost.php?p=73202864&postcount=11
  • Pixie5740
    Pixie5740 Posts: 14,515
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    ACG wrote: »
    I wouldnt say that.
    I can think of an example where a couple had their annual income in loans and credit cards and were struggling to pay their bills. We did a secured loan and yes it is over a longer period, but they can actually make it to the end of the month without worrying if everything will be paid.

    Consolidation can work for some people but only if they have addressed the root cause of the debt in the first place. It's one thing to have a lot of debt after building an extension and then consolidating it into the mortgage, it's another to continually spend more than you earn, consolidate, and continue spending more than you earn due to poor budgeting, and so the debt spiral continues. I hope the couple in your example are not the latter.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    OP you have already lost the equity as you put it. The equity is the value of the property minus any loans secured against it which in your case is the mortgage and the secured loan.

    I see from a previous thread that the secured loan has a rate of 15.8% APR :eek: and that you are making payments of £371 a month. By my calculations it will take over 100 years to repay the loan, that can't be right. On the face of it your most expensive loan is the secured loan so that's the one you should be focussing your efforts on. As much as I am loathed to say it this might be a case where trying to consolidate the secured loan into your mortgage might be a good idea since the loan is already secured against your home, it's over a long term already, and the rate is horrific. Most of all though you need to get a handle on your spending and come up with a realistic household budget or you will just end up in the same position again.
  • tlc678910
    tlc678910 Posts: 982
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    Hi, I just looked back at your old threads and wanted to ask if you pursued a complaint against the financial advisor? Their advise seems to have not helped you in any way as you are making similar monthly payments but for a lot longer and with a lot more interest.

    I would think complain to the company of the financial advisor and then their regulatory body. Their behaviour was unethical giving advice that cost you money just to get their commission.

    Tlc
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