CCCS Versus Secured Loan

[Archway]

Hi Guys,

 

Because of wifey's contract expiring, we now find ourselves with a shortfall of around £1500-00 per month. As a result, we are unable to meet our commitments.

 

Mrs Archway thinks she'll be back in work once the new term starts, and I think she will as well. But in the meantime, we're stuffed.

 

I've contacted the CCCS, they are putting together a DMP for me.

 

My question is, if I get a loan, secured, pay off my existing debts, go interest only on the mortgage, that frees up around £500-00 a month which would see us through. I don't want to start racking defaults again, just as my old ones are about to start coming off (I've kept my nose clean for five years, and now, through no fault of mine, they're about to start again)...

 

So, is a secured loan, for around 20k the better option than the CCCS?

 

BTW, I think the CCCS is a fantastic organisation

[Archway]

Another option may be a remortgage to include all the debts etc...

 

Any opinions anyone?

 

[Archway]

Anyone???

 

[mjc007.5]

Hiya,

 

My two pence worth before the more experienced happen along. There are those that would not recommend the secured route and I can see the argument about not turning potentially unsecured debt into secured debt. However, if you have definite income improvement on the horizon and your house equity is definetly stable enough to take the secured loan then it is a viable option. The other thing is of course ensuring that any credit or borrowing that is consolidated within this secured loan is not reused or maxed out down the line and I know from experience this is far from easy!

 

I am just about to leap in with CCCS on a DMP (so far so good) and I have to say it looks like it will work out. Having been kept in a very dark place by my debt problems I am probably more inclined toward DMP but can see merits in both.

 

Best of luck