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Secured loans

5 replies

WishITookLifeSeriously · 24/04/2021 20:08

I need to clear my debts but have a diabolical credit rating. I own my own home with no mortgage but cannot get a personal loan. I've tried the soft check and haven't passed any at all. All my debt is from pure stupidity but I want to face it now and feel one payment is better than multiple. I have never had a mortgage so don't have a clue where to start with getting a secured loan. Does anyone have any tips or recommendations please?

OP posts:
BarbaraofSeville · 25/04/2021 06:07

What I've put below may sound harsh, but it's meant with kindness, I just realised it sounded bad when I'd wrote it, so added this at the top Flowers

If you have an awful credit rating then my first tip/recommendation would be to not borrow any more money, because it's likely to be horrendously expensive and possibly not the best idea.

Is there any chance of downsizing to release money to pay off your debts and possibly keep some money back if the property you own is unaffordable for you to run. A smaller property should have cheaper council tax and utilities and you could reduce travel costs if it's closer to amenities.

But if that's not an option, you need to forget about 'one payment being better than multiple' because in the days of direct debits, that's nonsense and used by sharks to exploit the vulnerable and naive.

You need advice from someone who knows your full financial picture. Other things to think about:

What caused you to get into debt, was it a one off issue, or just financial mismanagment and are you over whatever it is?

Have you done a budget and could you afford to pay back a loan if you got one? How secure is your income?

If you spoke to a broker, you might be able to get an affordable mortgage, depending on what you mean by a diabolical credit rating, and if you meet income criteria but then you must keep up repayments or else your home is at risk. That's the big downside of a secured loan. If you don't pay, you can lose the asset it's secured on.

Have a look at www.moneysavingexpert.com/budgeting-debt-help/ for starting on sorting your budget and signposting for help.

Good luck. Smile

Anabela84 · 21/06/2021 19:58

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Whyareblokesonhere · 21/06/2021 20:08

Crikey do NOT go down the payday loan route as suggested above!

Try debt camel as a website to help with debt issues, also CAB, stepchange, you need to understand your options to then choose the best one.

You've already made one fabulous decision though and that's to tackle the debt, well done -its never easy

MoneyWhatMoney · 21/06/2021 20:31

I can't help with advice about a secured loan but I can say I've been in quite a bit of debt and chose to use the 'snowball' method rather than consolidating it all and it worked well.

As PP said, if you can't get a loan because of your credit rating, I would just look at the best way to deal with the debt as it is now.

For us, we called all companies and changed direct debit dates to the day after payday. Although the money was going to different places, it all went at the same time so may as well have been one payment IYSWIM?

Also, try anything and everything before going for a payday loan - they are horrifically expensive and absolutely designed to charge you extra on the basis that if you're looking there it means your options are limited!

Hoppinggreen · 21/06/2021 21:12

[quote Anabela84]@WishITookLifeSeriously Don't know about the home loans but during the COVID when I was jobless and had to take short-term loans to run my house, I had taken loans from www.maybeloan.com/payday-loans/mi and the experience was good.[/quote]
No, do not do this.
I have also reported that post

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