advice needed in debt reduction

awu98

Hi all, I'm new to these forums.. My problem is, I'm not sure quite how to manage my current debts.

They are two loans, but they amount to £16.6k and I'm paying £490 on them a month, which, on top of the mortgage and the like are starting to proove unmanageable. I was considering a conselation loan, but in the current climate it does not seem viable. One loan is for £12.6k with the HSBC but after 10 months of paying £360 a month, the balance is only at £11,580. The other loan is with one of their sister companies.. I've recently got a mortgage, and my salary is just covering my expenses but leaving nothing for emergencies, or in occasion fuel.

I've gotten rid of all credit card balances, and the only two debts are these loans, I've got no idea how to tackle them. They have 3 and 5 years left, so as things are, it will be very uncomfortable to continue for so long..

I'm not sure what steps can be taken to remedy the situation - I'm in the process of getting a motorbike as it will cost much less to run, and a fifth of what car insurance is costing, however this money could be used to reduce or pay off the second loan but the payments on this are less than the car insurance etc...

The Larger loan is straining me and I want to reduce it as soon as possible, but am not sure how it is possible.

I've been approached to have debts reduced to a £200 payment a month but am skeptical and cautious as there was little explained. It sounded like a debt management plan or agreement, they didnt mention it being an IVA, and I wouldnt want to go down this route..

Any advice would be greatly appreciated I'm not necesarily looking for an 'easy way out', but any advice to reduce and repay in as quick a time as possible would be great, or any consolidation routes, as my money is completely stretched at the moment!:(