| Question |
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What are the pro's and con's of a secured loan?
Can anyone recommend a secured loan.
Our options are:
An IVA (but we don't want to lose equity from our home)
or
A Debt Management plan which leaves us only 100pcm spare for next 5 years which means that not only do we suffer but so does our son
or
keep paying for loans that only have 2 years left on them and consolidate the rest - this means we will be seriously skint for next 2 years but after that can resume a decent standard of living...
Can anyone help? We are at our wits end... We have got ourselves into such a mess and it has all spiraled out of control. We don't want to default on any payments, up until now we haven't missed a single one, but we can't keep on as we are... Help?
Thankyou so much to everyone who's answered so far xx
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| By
lou lou |
Posted on
01/26/07 Total Answers
7 |
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| Answers- |
| I recommend doing a refinance on the house and paying everything off and having cash back...we got out of the same hole and could not be happier............WE have NO payments on anything but the mortgage... |
| Answer by :
HEAR TO HELP On Date
2007-01-26 11:49:19 |
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| been ther infact there at the moment we got a remortgage and cleared debts. however we have been in debt management we had a great company and were only paying £5 a month off our debts. iva is to be considerd in extreme circumstances its a repayment plan governed by the courts. my family members work in the debt industry if you want any info i could help you out most important thing to remember is that it can be resolved try not to worry. secured loan is good theres loads out there try ge money they are real good had several dealings with them good luck |
| Answer by :
daza On Date
2007-01-26 11:51:10 |
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| remorgage and pay it back over 25yrs a non secured loan has a higher interest rate but if you default they can still bankrupt you to get there money;its either that or sell the house and rent for a few years good luck its not the end of the world |
| Answer by :
peter w On Date
2007-01-26 11:56:02 |
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| go to the citizens advise beurau...its free! they will help and do all the work for you |
| Answer by :
stephen b On Date
2007-01-26 11:58:39 |
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| Bradford & Bingley are doing a 6% loan, secured on your equity, only charge a £125 arrangement fee. They pay for the survey on your house. You can pay it off over 20 years or as soon as you can afford to with no penalties.
6% is a darn sight lower than an equity release deal
0845 601 2243 |
| Answer by :
Boston The Border Collie On Date
2007-01-26 12:33:39 |
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| A secured loan typically is lower in interest as the finance company have an asset to protect their outlay. If you need a secured loan try www.surefirefinance.co.uk they should be able to help. |
| Answer by :
MARTIN D On Date
2007-01-26 13:48:29 |
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| A secured loan will traditionally be over a longer period and be at a lower rate so lower payments each month
As long as you can make the repayments and don't slip into the old habit of taking unsecured credit on cards etc, this is probably the best option. IVA or bankruptcy will undoubtedly require your home to be sold or "bought", whereas the secured loan will mean you can raise sufficient funds to pay off your unsecured debts and have a more manageable payment
Debt Management may offer a lower monthly payment, but this will only eat into your debt very slowly - the management company will probably take a slice of your payment to pay their fees.
An IVA is possibly an expensive option, but you would expect to pay as much as you can afford and then remortgage your house after say 6 months, or 4 years at its value at that time to release the equity. The fees for IVAs are high.
Bankruptcy is the very last resort - your house will have to be dealt with within 3 years and a remortgage would be difficult if you're both bankrupted, although not impossible as you will be discharged after a year probably
Good luck with whatever you do - but you must do something for your own peace of mind |
| Answer by :
liquidator01uk On Date
2007-01-26 15:14:28 |
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