what are my options

LindyLou

hi, i wondered if someone could give me some advice.
We owe £11 on a loan and £4 on overdraft.
I have just had to go on the sick from work and my income has dropped I now only get SSP. My partner has a good wage but we are really struggling anyway without this. How can i pay the loan and overdraft off in the cheapest way? I am tempted to take on another loan over a longer period so our outgoings arent more than our incomings. But I've heard Martin say not to do this?
We are currently spending £200 more than we should each month meaning the o/draft is creeping up and up.
I need a few months of work, and really would love to go back to college
Any help would be greatley appreciated
Thanks
LindyLou

marshallka

LindyLou wrote: »

hi, i wondered if someone could give me some advice.
We owe £11 on a loan and £4 on overdraft.
I have just had to go on the sick from work and my income has dropped I now only get SSP. My partner has a good wage but we are really struggling anyway without this. How can i pay the loan and overdraft off in the cheapest way? I am tempted to take on another loan over a longer period so our outgoings arent more than our incomings. But I've heard Martin say not to do this?
We are currently spending £200 more than we should each month meaning the o/draft is creeping up and up.
I need a few months of work, and really would love to go back to college
Any help would be greatley appreciated
Thanks
LindyLou

Did you have any income protection?? I take it you did not.. Are you on about a consolidation loan here or a secured loan?? Have you spoken to the bank?

What interest rate is your loan.? Perhaps worth looking around for a different rate.

LindyLou

yes i was thinking consolodation as i cannot afford to repay the debts at the moment, so instead of 4 yrs left on the loan take it over 10 yrs and include the other debts so its affordable.
What do u think?
Is this a bad idea?

marshallka

LindyLou wrote: »

yes i was thinking consolodation as i cannot afford to repay the debts at the moment, so instead of 4 yrs left on the loan take it over 10 yrs and include the other debts so its affordable.
What do u think?
Is this a bad idea?

I personally think its a bad idea as you may be ok to work again in a few months or so and may regret lengthening the loan by another 6 years in the long run.