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  • FIRST POST
    • Grazeley
    • By Grazeley 12th Apr 18, 9:55 PM
    • 29Posts
    • 6Thanks
    Grazeley
    Secured loan saga continues
    • #1
    • 12th Apr 18, 9:55 PM
    Secured loan saga continues 12th Apr 18 at 9:55 PM
    Evening all,

    Just wanted to sense check where my head is at right now please, thank you in advance.

    1.5 years ago we took out a 30k debt consolidation secured loan, i won't go into the background but we were very much pressured into this by a pushy 'financial advisor' and I was suffering from PND at the time and not on top form. I am fully aware how this was totally wrong so please dont feel the need to remind me consolidation never works, I am living that right now with debt back on the credit cards being chugged away at. Urgh! We are still reeling from the fact that spending 370 per month on the secured loan payments we've only paid off about 100 in 18 mths.

    My mortgage is due for renewal in 11 weeks. My gut says take the remortgage offer from my existing lender of a lower fixed rate which saves 200 per month. And then pay off the other debts and then start chipping away at the secured loan and perhaps look to absorb it into the equity in 2 years time at the end of the new fixed rate. Or pay some off with a 0% credit card or other lower interest rate option to pay it off.

    However, we could absorb it now into the mortgage - but i feel that loosing my equity and impacting my LTV and therefore offered mortgage rates on-going will be another smack in the face of this saga. But keeping it for even another day is chucking money in the bin.

    Hmm, I will post this in loans too.

    Thanking you.
Page 1
    • TadleyBaggie
    • By TadleyBaggie 12th Apr 18, 10:03 PM
    • 2,708 Posts
    • 2,053 Thanks
    TadleyBaggie
    • #2
    • 12th Apr 18, 10:03 PM
    • #2
    • 12th Apr 18, 10:03 PM
    Duplicate thread: http://forums.moneysavingexpert.com/showthread.php?t=5826952
    • Grazeley
    • By Grazeley 12th Apr 18, 10:10 PM
    • 29 Posts
    • 6 Thanks
    Grazeley
    • #3
    • 12th Apr 18, 10:10 PM
    • #3
    • 12th Apr 18, 10:10 PM
    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
    • By Thrugelmir 12th Apr 18, 10:14 PM
    • 58,196 Posts
    • 51,568 Thanks
    Thrugelmir
    • #4
    • 12th Apr 18, 10:14 PM
    • #4
    • 12th Apr 18, 10:14 PM
    I am fully aware how this was totally wrong so please dont feel the need to remind me consolidation never works,
    Originally posted by Grazeley
    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.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ACG
    • By ACG 12th Apr 18, 10:24 PM
    • 16,701 Posts
    • 8,681 Thanks
    ACG
    • #5
    • 12th Apr 18, 10:24 PM
    • #5
    • 12th Apr 18, 10:24 PM
    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
    • By tlc678910 14th Apr 18, 1:01 AM
    • 518 Posts
    • 892 Thanks
    tlc678910
    • #6
    • 14th Apr 18, 1:01 AM
    • #6
    • 14th Apr 18, 1:01 AM
    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.
    Last edited by tlc678910; 14-04-2018 at 8:55 AM. Reason: Typo
    • getmore4less
    • By getmore4less 14th Apr 18, 6:26 AM
    • 31,898 Posts
    • 19,119 Thanks
    getmore4less
    • #7
    • 14th Apr 18, 6:26 AM
    • #7
    • 14th Apr 18, 6:26 AM
    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
    • By Pixie5740 14th Apr 18, 6:59 AM
    • 11,928 Posts
    • 16,795 Thanks
    Pixie5740
    • #8
    • 14th Apr 18, 6:59 AM
    • #8
    • 14th Apr 18, 6:59 AM
    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.
    Originally posted by ACG
    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
    • By Pixie5740 14th Apr 18, 7:13 AM
    • 11,928 Posts
    • 16,795 Thanks
    Pixie5740
    • #9
    • 14th Apr 18, 7:13 AM
    • #9
    • 14th Apr 18, 7:13 AM
    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 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
    • By tlc678910 14th Apr 18, 10:35 AM
    • 518 Posts
    • 892 Thanks
    tlc678910
    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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