Secure loans and no money

[Moneyisrubbish]

Due to multiple redundancies and a whole host of unfortunate financial situations (broken boilers ect) we are in a horrible financial situations. Both now in steady work and it should be enough to meet our bills and have a bit of a life however due to heavy debt to get through our long term rough patch we are broke and struggling to meet the bills.

I want to consolidate however we aren’t getting approved for unsecured debt. We have however been approved for secure debt.

I can no longer cope with our financial situation and I’m falling into low moods and feeling horrible. I need to do something, I don’t want to do a debt management plan as we’d be stuck in our rubbish house for too long. I’m now in a job with career progression and in three, four years we could be in a much better position.

Is there any reputable secure loan companies or is it a terrible thing to do and if not what an earth do I do? I feel so desperate.

I really really would not do this. You’re going to be in a much worse position if next time you lose the roof over your head too.

Have you contacted Stepchange? They are excellent at guiding through difficult Financial Times, and could probably help you avoid secured debt!

Why do you want to consolidate? Do you think you’ll get an overall better rate or just for simplicity? As PP says it’s rarely a good idea.

Have you investigated remortgaging? For most people extending your mortgage is likely to be the cheapest debt you can access.

Contact Debt charity like step change.

Do not go to a commercial organisation as they will likely rip you off.

One of the golden rules of money is that you never swap unsecured debt for secured debt. If you aren't being OKed for unsecured it’s because the companies believe you will default. The secured debt companies may also believe that but they get your stuff so they don’t care.

Have you done literally everything else? Asked family, sold everything, done extra work, talked to any charity/government financial advice resources, talked to your creditors about payment holidays or deferring interest, looked at any benefits you might be eligible for? Literally everything else is better, in most cases.

I want to consolidate as it would free up money and I’d be able to pay rather than defaulting on certain payments.

Im speaking with a mortgage advisor but very very unlikely as recent defaults. I have never missed a mortgage payment but I imagine they have policies on recent defaults. Just no point in anything right now.

All debt consolidation really does it put the various payments in one place.
Speak to your local CAB for specialist debt advice.

The best financial rule of thumb is that if you can’t get unsecured debt, do NOT get secured debt. There is a very good reason you cannot get unsecured debt, you’re a bad risk, so do not bet your home on that.

No-one can advise without a full picture of your income, outgoings and general circumstances except tk point you towards a debt charity like Step Change. Also that securing the debt on your home is unlikely to be the best way of getting out of debt.

Go to Money Saving Expert 'Debt free wannabe' boards and post your question there. They have lots of nonjudgmental and knowledgeable folk (including people who work for debt charities), and they can advice on the different solutions and signpost you to suitable organisations.

All the best x

which bills are you struggling to pay? Have you checked out step change they can work through an income expenditure and signpost you for help. Don’t feel bad you might need help to get you on track shocks like changing income and unexpected bills can spiral you have reached out on mumsnet so clearly this is giving you worry.