Hi,

I have a friend who has racked up 24K in debts, mostly credit card. She is a single parent mum who owns her own home (it's not worth a great deal and she will at some point owe her ex 1/3 of the equity). Anyway the work she does isn't greatly paid (works for herself) and she has kinda fiddled her tax a bit (cos she's so underpaid) so she can't prove her earnings. She tried to apply for a loan but got refused

What would any of you suggest (apart from of course, watching what she spends).

Counselling for a kick off!! Sounds like it is time to get professional help for her problem. There are debt counsellors around.

The loan was to pay off her credit card debt. Getting a lower interest. Seems amazing these banks will lend money in the form of a credit card (high apr) but not a loan (low apr).

I would suggest she seeks some debt advice from a company such as The Citizen's Advice Bureau or CCCS (Consumer Credit Counselling Service). They will look at her income and outgoings and put together a realistic plan to deal with all the companies she owes to.

They also deal with all of the paperwork. Tell her not to go anywhere near any of the companies that charge a fee for this service. The C.A.B and CCCS do it for free.

I tried the CAB but they only want to help people who aren't working (no offence intended) rather than people who are. Basically they get money from the government to cover the cost of helping people who aren't in work, but nothing for helping those who are.

So I signed up with a company called Payplan who basically came up with a financial statement and arrangeed payments to my creditors at a rate I can afford. OK, could take years to clear but it certainly takes a weight off your shoulders when you seem to be getting nowhere fast. It's also free.

i was on a low-paid job 2 years ago

the bank kept giving me loans too cover the loans

they had me so tight--if they asked me too lick the floors- of the bank--i would of done it

now im in a well-paid job
will hav all my debts cleared by july.
will also be in the black in my account all the time.expecting letters from my bank too pile in.for a new bigger loan.wont be taking one.banks hate it when you never go o/drawn.no charges come there way.

my advise---look for a better paid job.never take on loans too pay loans.slowly but surely pay off your debt,and stay within your budget