debt raising
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bigpatch34
Posts: 1 Newbie
Was wondering if anyone could help, my friend whos only 19 has a £1200 loan and gone overdrawn by £800 with her bank as she her finances changed
shes now struggling to pay the debt and both creditors are asking for the money, shes willing to pay what she can, however the problem is with the interest getting higher shes getting deeper so not getting anywhere
whats the best advice to give?
thanks
shes now struggling to pay the debt and both creditors are asking for the money, shes willing to pay what she can, however the problem is with the interest getting higher shes getting deeper so not getting anywhere
whats the best advice to give?
thanks
0
Comments
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With only basic information given then only basic suggestions can be given.
Earn more than they spend - throw as much as possible at the debt.
More info would be useful, like is the overdraft planned or unplanned?
Have they missed any payments on the loan?
How drastically have their finances changed?
Is this likely to be a long/medium/short term change?
They would also need to address the reason they have the debt in the first place - is it possible it could happen again? How would they prevent this happening again?I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Hi,
What do you mean by her financies have changed ?
Lost her job, less hours ???
Permanent or short term problem ?
More info needed as said above.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
maybe she could try her local credit union for a loan to pay of the debts
My local credit union are fantastic and i have managed to pay off my credit cards with a loan from them this has saved me around £200 a month in interest
Just make sure if she does get a loan she must cancel the credit cards to ensure she doesn't spend on them again and rack up more debt0 -
Hi bigpatch34
A really good starting point for your friend is to complete a statement of affairs (SOA). She can do that here
http://www.stoozing.com/calculator/soa.php. It will ask her to list her income and outgoings and will show what she can afford to offer her debts.
If you can post it back on here we'll be able to give more specific advice on her options. If the debts aren't affordable, one possibility will be to ask for a reduced payment plan and freeze on interest. It will also be important for her to make sure she is banking somewhere she has no debt, so that her money cannot be used to pay off these debts without her permission.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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