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If you are not too far down the road of debt, you may still have some potential sources of new loans available, or existing loans which might be increased. If this is the case, then one option which is open to you is 'consolidation' of debts. This is basically the principle of 'borrowing from Peter to pay Paul' put to constructive use to either reduce risk or to reduce the overall number of payments you must make. There are several circumstances under which this might make sense:
1) If you have a large number of small debts which are difficult to keep track of, it may be simpler to get them all under one roof provided that you are not increasing your risks. Against this is the possibility that it may actually be to your advantage to have a large number of small debts as creditors who are owed only small sums are unlikely to take any drastic action. Not recommended in general.
2) If it is possible to borrow from a lender who is less likely to inflict damage on you than an existing creditor (for instance paying off a secured loan with an unsecured one). Highly recommended if this is a possibility.
3) If you can borrow from a lender at a much lower interest rate than that which an existing debt commands (for example you could increase your overdraft to clear your credit card debts, or borrow from a credit union to pay off a loan shark). Care required.
You are strongly advised never under any circumstances to repay an unsecured debt loan secured by your home. If you can then maintain payments on the loan guarantee, which can easily turn a crisis into a catastrophe. It should also be noted that if you deliberately, knowing that the loan will not be able to repay as agreed, may be subject to criminal prosecution.
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