New partner with loan problems

Badger_Lady · 12 July 2008 at 10:20PM

:eek:

I've spent a long time straightening myself out financially after being burned by an ex, so I'm particularly cautious these days...

My new partner is due to move in with me in a few weeks, under slightly odd circumstances. I've just found out that he's 4 years into a 5-year loan with Barclays (no idea what it was originally for).

I do despair that he has no idea what rate he's being charged at, nor what his outstanding balance is! But his monthly repayments are £261 :eek:.

Now, he has no assets or savings, no job and is not currently claiming benefits (although I've today told him to get onto that, even if it is only a few weeks!). His loan does not offer payment holidays, and the best they could do was to change his payment date so that he had an extra 5 weeks gap.

He originally took out PPI with it, but he's not covered because he quit his job (relocated long-distance), rather than being forced out. He'd planned to find work when arrived, but it's apparently pretty dry up there.

Anyway, he got a letter today saying that he's missed his payment, is now paying additional interest on the arrears, and needs to make his next payment urgently.

He blatantly can't do it.

What are his options before this gets out of control?? I don't want to sound unromantic, but I'm not having him move in with a default.

jonesMUFCforever · 12 July 2008 at 11:02PM

You lending him some money is out of the question?

jd87 · 12 July 2008 at 11:08PM

Umm... no offence but I think you need to ditch this loser.

Badger_Lady · 12 July 2008 at 11:11PM

:rotfl: cheers! I'd be lying if I said I hadn't questioned things, but the heart wants what the heart wants...

He'll be working at my company's call centre when he moves here, at least until he can get a proper job. So it really is only an interim solution I need for him.

And yes, me paying it off is completely out of the question!!!

bubblesmoney · 13 July 2008 at 12:54AM

Badger_Lady wrote: »

but the heart wants what the heart wants...

that could end up being costly on ur credit history and bank balance and not to forget he could have some sort of claim on ur house (which i gathered from the other thread regarding lodger1 troubles) if he moved in and was contributing to house expenses and decorates and improves the value of the house etc. looks like u just sorted urself out and asking for trouble all over again.

he might be good BUT is he that good to take the risk on ur finances. thats only something that u can figure out i guess

MYLITTLESISTERLOLA · 13 July 2008 at 8:49AM

BEWARE
I have an ex partner who had similar problem when we lived together, we split up and 3 years later I was still getting calls to say he had used my name as a reference to get loans without my consent and he stole my passport presumebly to use with loan appications and on doing a credit search this year under my details he applied for a loan under my 1st name and his surname... creepy, didn't go through thank god !!! p.s. If I ever find him the scene will not be pretty ( he lives in a different part of the UK now Wales I think and his initials are P.S. just incase this sounds familar to some-else out there)

Hopefully your situation will not deterioriate to this but I am now very wary.
Do not take out any joint finances until your sure he's cabable of keep to his side of the bargain, surely he can get some kind of job even if it is unskilled

Good luck with this one but again be careful

standupguy · 13 July 2008 at 4:00PM

If I were you I would persuade him to get a copy of his credit record possibly from the point of view of trying to help him find the best solution.

This may be not the only credit baggage he brings and this would give you an opportunity to take a look?

You will know if you take out a joint commitment or apply jointly for credit your names will be linked and any detrimental infiormation he has may start to effect you?

Re the loan, perhaps he should contact them and arrange to make half payments, if possible, for now?

Badger_Lady · 13 July 2008 at 4:05PM

standupguy wrote: »

Re the loan, perhaps he should contact them and arrange to make half payments, if possible, for now?

That's the kind of thing I'm after! :T

So is it best to call the number on the letter, or are they just going to demand payment repeatedly? They only thing he's got is a telly - personally, I'd rather he sold it than got into trouble, but I can't see him seeing it that way...

standupguy · 13 July 2008 at 4:12PM

Ring the number, explain that he is currently out of work and make a short term arrangement of what he can afford - if a half payment per month they should go along with this for say three months and then review the account again.

This way you are being proactive and they can see it is circumstances that is causing the issue - not an unwillingness to pay

CLAPTON · 13 July 2008 at 4:28PM

I'm a bit confused:

he has only one debt which costs 252 per month

in 2/3 weeks he moves in with you and has a job at a call centre

you are presumably considering spending your life with this chap

now, whilst I wouldn't even suggest that you should pay his debts, it seems to me we are looking at a shortfall of say 2 or at most 3 payments of 252... so maybe you could lend him this money.
Ok a lot of money but he will be earning and could repay you say over the next 6 months.
Otherwise, he will have whatever credit record he has, completely trashed, be charged lots of fees and interest etc.

and if for any reason he doesn't pay you back, you have the opportunity of avoiding a future very very costly mistake for a relatively modest outgoing.

maybe I've got this wrong.

beanielou · 13 July 2008 at 6:15PM

Good advice there from CLAPTON Badger Lady me thinks.

New partner with loan problems

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