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  • FIRST POST
    • mingay101
    • By mingay101 3rd Sep 17, 7:12 PM
    • 2Posts
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    mingay101
    Help - How to shift his debt
    • #1
    • 3rd Sep 17, 7:12 PM
    Help - How to shift his debt 3rd Sep 17 at 7:12 PM
    My partner has some debt....

    More than I wish he had but I am willing to help him.

    Let's lay it out

    Loan - £7,000
    Credit Card - £2,200
    Father - £750
    Me - £800

    I wanted to do a 0% credit card - but he is getting rejected for those. He was recommended a IVA but after looking in to it, I wasn't so keen as we are trying to save for a house (as you can guess, not going so well)

    I am running out of options. He isn't particularly good with budgeting unless I do it for him and I don't want to be that controlling as I want to make him learn that he can do it himself.

    I don't want to do anything that will effect his credit score.

    Any suggestions?
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Sep 17, 7:17 PM
    • 4,686 Posts
    • 8,873 Thanks
    enthusiasticsaver
    • #2
    • 3rd Sep 17, 7:17 PM
    • #2
    • 3rd Sep 17, 7:17 PM
    Why was he recommended an IVA? Is he working and able to make payments?
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Sep 17, 7:18 PM
    • 4,686 Posts
    • 8,873 Thanks
    enthusiasticsaver
    • #3
    • 3rd Sep 17, 7:18 PM
    • #3
    • 3rd Sep 17, 7:18 PM
    It is a bit drastic to do any sort of DMP, IVA for just over £9000 unless he has no income.
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • SHill
    • By SHill 3rd Sep 17, 7:45 PM
    • 141 Posts
    • 60 Thanks
    SHill
    • #4
    • 3rd Sep 17, 7:45 PM
    • #4
    • 3rd Sep 17, 7:45 PM
    Right then

    When did he apply for cards...what's is credit history look like? The past 6 years?
    Could you consider a credit card shuffling instead of getting new cards?

    Increase credit limits on the cards and balance transfer?

    Then complete the snow ball effect...paying the largest debt or the card with highest rate off first.

    If you are considering buying a house you need to consider a timely credit search done by building/bank.

    Oh and get your OH to sign up to this web site so he can help himself.

    Do you have any savings?

    Money & family can strain family relations so make sure you all have a clear understanding of who owes what and how much and when the debts have been paid.
    • mingay101
    • By mingay101 6th Sep 17, 2:25 PM
    • 2 Posts
    • 0 Thanks
    mingay101
    • #5
    • 6th Sep 17, 2:25 PM
    • #5
    • 6th Sep 17, 2:25 PM
    He has a full time job. He gets the 'bill' from the CC company and just pays the minimum balance. Which in my opinion is not the attitude. He shouldn't be doing that. He should try and shift it because the interest he is paying on it is ridiculous.

    We were looking at the cards and balance transfer about 2/3 weeks ago. The closest we got with 0% card was to put £950 of £2000 on there and it was only for 18 months?

    I have savings but to be completely honest, I am not willing to let him have any of mine.
    • EssexHebridean
    • By EssexHebridean 6th Sep 17, 2:51 PM
    • 8,149 Posts
    • 43,037 Thanks
    EssexHebridean
    • #6
    • 6th Sep 17, 2:51 PM
    • #6
    • 6th Sep 17, 2:51 PM
    Hang on a second - does he actually want to do anything about this? Or is he still cruising along effectively oblivious? we're said this on here before, and tough as it is it holds very true - you can't have a lightbulb moment for someone else, and from what you've said it sounds very much like you want him to do something about it a lot more than he does.

    Absolutely agree with you about not using your savings to pay his debts off - that's a definite, certainly until he reaches the point where he is proactively doing everything he can himself to get the debt gone, you may want to reconsider at that stage. (But if you do and the answer is still no, that's fine!)

    18 months of Interest free on £950 is better than leaving it all on the interest bearing card as far as I can see. If he does go that route though, rather than setting the direct debit for the minimum he should set it at the level the minimum starts at, rounded up to the next £ - so min payment £28.63 - set the DD for £29. That way he continually pays off a little more each month over and above the minimum as the capital amount falls - make sense? He could do the same thing with the existing card but ONLY as long as he doesn't spend on it - it's a dangerous game otherwise!

    It does sound like learning to budget is pretty key to him improving his relationship with money - but again, he has to actually want to do it.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
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