To give you an idea of the sort of loan that you could get. Suppose that you have something of value, you could take it to your local pawn broker and get a loan of £3000 with an interest rate of something extortionate like 25% per month (apr 1355%). You would then have to pay interest of £750 per month until you ran out of money. You would then lose your item of value and could also still be held liable for the debt.

If, instead, you offered to pay off your current debts at a rate of £750 per month, your creditors would accept this offer and within a few months your debts would all be paid off.

I appreciate that you are unlikely to be able to afford £750 per month. The point that needs making is that another loan in your present circumstances will make your situation worse.

Hi James.

I think you will find it extremely difficult or even impossible to obtain a loan in your current circumstances. The fact that you haven't made a loan repayment for 6 months will mean you will have at least 1 default registered against you. This coupled with the fact that you are in arrears elsewhere will make it highly unlikely that even lenders specialising in helping customers with adverse credit will give you a loan.

If you contact the Citizens Advice Bureau they will go through an income and expenditure form with you and contact your creditors to try and arrange reduced payments and freeze the interest.

Once you have cleared your arrears, if you keep paying on time, in time, your credit rating will improve slowly and you will be in a better position to obtain credit.

Good luck

A loan with higher interest than your current debts will only increase your problems.

Talk to someone at your local Citizens Advice Bureau about the best way to deal with the people who you owe money to. It is far better to come to an arrangement whereby you gradually pay off your existing debts than to get even further into debt. Debt management companies are usually just out to try and gain from your situation more than to help you.

Hi, I am desperately trying to find a loan to pay off outstnading debts and to buy necessary things to set up self employed fitting kitchens. I have no creit or store cards, however I have a bank loan which I owe 2300 but havent made a payment in the last 6 months. I've just gone through a bad time but now am desperate to get back on track. I also am over my agreed over draft limit with my bank by £50 and owe a mobile phone company 100 pounds, and a gas company 600 pounds. I have received offers from debt management companies, but have not been successful in finding a loan for that extra bit of cash. I am willing to accept an offer for a loan with high interest rates and was wondering if you can reccommend anyone who can help me. thanking you in anticipation, james