not sure what to do with boyfriends debt

xcat_girlx

my boyfriend owes about 15k on a loan and a few cards. its taking up nearly all of his income though in theory he DOES have enough money to make the payments every month.

He wants to get something done to reduce his payment so we can get a house together (probably just to rent for now) and got told from his bank he couldnt have a loan cos he went over his overdraft a couple of times.

He also doesnt want an IVA as we'll probably want a mortgage in a year or so.....

I've said i'm prepared to go on a loan with him to get him a loan for it all snce i have a good job and good credit but is a loan going to be the best way to free his money up and if not then what is?!????


***also, he missed 1 of his card payments last month through no other reason than he thought he'd paid it when he hadnt which has now put him in a worse situation. he lives at home with his parents and has no assests etc***

mrposhman

what are the interest rates on his loan and credit cards? Is the vast majority of the debt in the loan?

CLAPTON

if you get loan with him (i.e. a joint loan) you will be jointly and severally liable... i.e. if he defaults then they will pursue you for the full amount.


By getting a joint loan you are linking yourselves financially together .. if one has a poor credit record (or gets one in the future) then you will both be adversely affected.

So I won't go there at all.

You / he really need to post up a SOA for your OH showing his income, spending, and the full debt details (amount, APRs and monthly payments) before one can give proper advice.

Why does he have the debts.. has the spending that caused theses now changed.
Can you get a increased income... overtime, parttime job to help pay off the debts... sell stuff on ebay

Frankly I can't see how simply refinancing the debts will free up enough money to get a house with you....better to address the causes of the debt, reduce spending, increase income and see whether he can get 0% CC deals or low LOB CC to reduce the APRs of the debts and try to pay as much off as possible before incurring more spending by getting a house to rent.

xcat_girlx

mrposhman wrote: »

what are the interest rates on his loan and credit cards? Is the vast majority of the debt in the loan?

its mostly on his cards. he stupidly took out a loan a while ago to clear his debt and then went back into his cards. im not sure of the exact figures etc.

xcat_girlx

CLAPTON wrote: »

if you get loan with him (i.e. a joint loan) you will be jointly and severally liable... i.e. if he defaults then they will pursue you for the full amount.


By getting a joint loan you are linking yourselves financially together .. if one has a poor credit record (or gets one in the future) then you will both be adversely affected.

So I won't go there at all.

You / he really need to post up a SOA for your OH showing his income, spending, and the full debt details (amount, APRs and monthly payments) before one can give proper advice.

Why does he have the debts.. has the spending that caused theses now changed.
Can you get a increased income... overtime, parttime job to help pay off the debts... sell stuff on ebay

Frankly I can't see how simply refinancing the debts will free up enough money to get a house with you....better to address the causes of the debt, reduce spending, increase income and see whether he can get 0% CC deals or low LOB CC to reduce the APRs of the debts and try to pay as much off as possible before incurring more spending by getting a house to rent.

he is now spending nothing a month except for maybe £30-£40 as every penny he has is going on paying the minimum payments on his card. he doesnt have a car or anything to run either and cant physically cut back on anything else.
a large bulk of it was caused by his ex and also by his shopping habits which he now realises was a mistake.

in theory, if he freed up enough money to put money aside for a deposit on a house, could he then pay the remainder off by taking extra out on a mortgage? or is that just going round in circles?

CLAPTON

he needs to post up the full debt details... without them its all guessing

100% mortgages have finished, you will need a least a 10% deposit
if he has any spare money he should put it to reducing his highest APR debt but as I say without knowing his income spending and debt details it all very opaque

Zazen999

Hi

Don't do it is the obvious answer - and that's already been posted.

Really, it needs to be him trying to sort this out - so get him to register, log on and get an SOA up.

xcat_girlx

i have the house deposit from my parents so thats not an issue with the mortgage.

we're meant to sit down and the weekend and look at everything he could do.

i know he earns roughly 14k, with at least 130p/m going to his parents in board, 170 on 1 card and 80 on another as well as a store card and his loan.

xcat_girlx

hes completly terrified of it though. he cant even bring himself to call the card company to try and negotiate on this late payment. it took him 3 months to go to the bank and ask about the loan. men!!!

Zazen999

Seriously - there's people on here with much more debt - missing a payment in that situation just says to me that he needs to take it in hand and start getting it sorted.

Nobody else can.

xcat_girlx

Zazen999 wrote: »

Seriously - there's people on here with much more debt - missing a payment in that situation just says to me that he needs to take it in hand and start getting it sorted.

Nobody else can.

thats what i keep telling him. i used to work in a secured loan call centre and i've heard far worse. i just dont seem to be able to get it into his head!