Remortgaging is not an option I have just found out so looks like consolidation loan might be the best bet. my credit card (even though they are charging 26.5%APR) has offered to refinance the overdraft and credit card balance so I might look into what rate they can offer. My credit rating is not bad, never missed a payment but have a couple of late payments. But I am only paying minimum payment as it so high. If I can find employment perhaps I could pay it of earlier. Just need to reduce the interest i am paying so that what I am paying is of the debt rather than in interest. I could see light at the end of the tunnel then !!! I really do not want to go for debt management as I think it could ruin my financial credit for the future, not that I would ever get another credit card. But when my mortgage rate is up I worry that it will interfere with it. thank you very much for taking the time to reply.

There's nothing to be ashamed about - there are thousands of people in the same boat as you - at least you are doing someting about it - only reason i am here is because of my debt (under control now thank god).

Best bet is to look at increasing your mortgage by £30k to pay off all the debts - it will be a lot cheaper each month than you are paying at the moment.

if you take out a consolidation loan you will be paying interest on interest as the loan you have already includes all of that interest and then the consolidation loan will add all of their interest at the beginning so your £30k will turn in to say £35K just by taking out the consolidation loan.

if your credit rating is good have you looked at putting whatever you can onto a 0% card - even if it's only for 6 months it can make a real dent.

If none of that works you could look at debt management - it reduces the amount you pay each month but extends the period you repay. Also it relies on the goodwill of your lenders to freeze charges and accept what is offered so if your credit card company are being "difficult" now they could still be in Debt mangement.

Look in your yellow pages for an Insolvency Practitoner near you - they will probably give you loads of free advice on your options and they are qualified unlike so many "debt advisers" out there. Seems almost anyone can advise on debt these days so make sure you speak to some one whose qualifed not just a "debt counsellor"

that's terrible that the credit card company wont help - is there any way that you could check out getting a loan to consolidate all your debt into one lower payment?? I know that some of these loans are secured on your home but if you are at risk of losing it anyway then where's the harm and if you know you can manage the payments better I can't see it being an issue....

This is something that I would definately consider if i landed in a situation like this, keep checking this website for advice or ask one of the experts to recommend a reputable company!!

Iv learned loads of here so far as im 27 and had some debt before i got my house, i got approved for a mortgage and an unsecured loan but can't get a joint account with my partner and his credit score is excellent!

If your credit score is good then you should be able to benefit from better interest rates on a loan - let me know how you get on and chin up!

x x

I am married, with three children. we own our own home with 115 000 morgage. the property is worth approx 175 000. we have debts of about 30 000 in overdraft, a personal loan and two credit cards. My husband is self employed and earns approx 30 000 annually. the repayments are crippling us. we have met all the payments but money is very very tight and he is working seven days a week but we have nothing left at the end to even replace the kids clothes at moment. One credit card wont lower my interest rate. dont know what to do. really dont want to go to debt management. hubby wants to sell the house, rent and cut our loses. i am ashamed. I am looking for work but not easy when you have been at home for a long time. studying to increase my employment ability.