Firstly, (and I make no excuses at repeating this in these articles) are you serious about getting out of debt? If you are, you can consider your family as an option. If you are not serious about getting out of debt and you just want some ‘breathing space’, you risk losing your family’s support and their money!

Asking relatives or friends for financial help is a tough decision, but can be the best option (at least for you). In most circumstances, a loan from such sources would be interest free, although I have known of cases where a token interest is paid if only to impress upon the borrower the gravity of the situation. It should be remembered that the money loaned to you was probably earning interest, and in some cases part of the yearly income of our parents.

If your debts are that highs that a second mortgage would have to be taken out by say, your parents, you need to have a ‘cast iron’ repayment plan. If you have any doubts about your future ability to meet the payments you must not put your problems before the possible problem you may drop on others (life-long homes have been lost, a more common scenario than you may think).

The amount of repayment is an important factor. If you have the opportunity to take an interest free loan, you should also take the opportunity to repay the loan at a rate you can maintain at 101% (this is crucial as falling behind with this type of loan can affect all of your family, and can cause wide and irreparable damage).

Repayment of loans from people close to you is normally enough to regain your position in your family, and life. Take your friends or family out for a meal when you finally pay off the loan. This will be enough repayment to those that care about you but do not pay by credit card!