loan broker?

[d3ano]

A friend of mine is in a bad way with credit. She can’t get a consolidation loan to cover the other 2 loans she already got. Which in turn are killing her with the expensive payments.

I have told her to try her bank and a home owner’s loan. She been with the bank for about 3 years now, but they weren’t able to help her (no luck there then).
And she wants to try the home owners one, but is not sure how they work.
Personal loans are a no no as everyone is turning her away.
Can anyone tell me how these work so that I can pass this info on to her.
Also are there any other ways of credit so that she can clear her debt or consolidate?

I hate to see a friend being screwed over by the system, so I would appreciate all the advice you guys can give.

Thanks all

D3

[rushdriver]

They always say that borrowing money to pay back money is a no no. Can't she talk to the Citizens Advice Bureau and they can talk to the companies that she owes the money to and maybe freeze the interest payments or extend the terms etc etc.

Any loan company will be helpful because at the end of the day they would rather get something back than nothing.

I hope she's OK.

Cheers

John

[JonRB]

rushdriver said:

They always say that borrowing money to pay back money is a no no.

I disagree. If you can borrow at a lower interest rate than your current loan(s) then it makes sense to take advantage of that to reduce your interest payments.

For example, if your current loan is being charged at 18% APR and you can get a credit card offering 0% on balance transfers for the first 6 months then 14.9% thereafter, then taking advantage of that is surely a shrewd move.

However, you must be careful to only borrow what you need and not sink further into debt.

[rushdriver]

JonRB said:

[quote=rushdriver] However, you must be careful to only borrow what you need and not sink further into debt.

Yeah, sorry I should have made it clearer, you are absolutly right.

John

[d3ano]

I have told her to make a visit to her local CAB.
Hopefully they will be able to advise her on the next steps.

...I don't think that she can get another loan. She said that she tried this, but the refused everytime.
I don't know how bad the problem is, but i hope that they are able to help her.

Cheers

D3

[aceparts_com]

Sounds like an IVA is in order?

[d3ano]

aceparts_com said:

Sounds like an IVA is in order?

what's an IVA? is that like an IOU? seriously what is it?

[Billsnemesis]

An IVA is an Individual Voluntary Arrangement and is a form of insolvency. Basically you scrape together all your assets and divide it up to pay debts pro rata.

It can have seriously adverse consequences on getting credit later.

The home owner loans are relatively straightforward. I cringe whenever I see the ads on TV but they can work. They are second mortgage so the lenders have some security and, as the ads say, your home is at risk if you do not pay up.

The advantage is that they will sometimes lend where banks will not and the rates are better than credit cards. The downside is that there will be some overhead costs as it is like a remortgage and has to be done by a solicitor and requires the first mortgage lender's conest As cheesy as the ads may be it has to be worth a call.

[minimax]

d3ano said:

aceparts_com said: Sounds like an IVA is in order? what's an IVA? is that like an IOU? seriously what is it?

YHM