Question:
I need some advice on debt. My girlfriend and I are struggling to pay all our debt. We have tried to apply for a consolidation loan from Old Mutual, but were told that they can`t help us as we both work for privately owned companies therefore the amount that they can lend to us is not nearly enough to pay off our debt.
What would the best option be to try?
Ian Wason, Justmoney's debt expert and CEO of DebtBusters answers:
"You may want to secure a loan from another institution, but remember that your instalments may actually end up being more than what you currently pay to your creditors combined. It may not be the best idea to address your debt with more debt. You can try contacting your creditors and renegotiate the payment terms and instalments.
"If you have defaulted on any of your payments, this will affect your credit record and therefore affect your chances of getting access to credit. Another remedy is debt counselling which is similar to a consolidation loan, as you make one consolidated payment every month towards your creditors, at a much lower rate (decreased interest rates) than you are currently paying.
"If you would like to hear more, please call DebtBusters on 0869 99 06 06 and receive a free call back."