Can I repay my secured debts?

Secured debts are those where the lender has taken a legal charge (mortgage) over some item of your property, which he could then sell under law in order to cover the outstanding balance if you fail to keep up with the agreed payments.

These debts are considered priority debts for this very reason and it is important that, in putting together a monthly budget, these are included as part of your essential living costs which are covered before we consider what money is left to pay towards your Non Priority Debts.

A Debt Management Plan will only address your unsecured (Non Priority) debts as part of the payment arrangements to creditors, as the primary aim of this Plan is to bring payments to your creditors down to a level that you can reasonably afford within your budget. This is likely to breach the original terms of the agreement made with the lender, rendering the loan etc in default. If the debt had been secured against your property, this default could allow the lender to start proceedings to take legal possession (ownership) of your property and ultimately sell it to recoup their money.

If you are unsure whether your debts are secured or unsecured, or wish to discuss this in more detail, please call our team on 08448 247 260

Or ask us any Debt Management questions using the form below: