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How to help a buddy

I have a friend in his 50`s who is sadly pretty niave when it comes to money. He is self employed and has lost his contract. He is now on another paying a fraction of what he was earning. After tax, he isn`t covering his mortgage! In desperation he has cashed in 2 very small pensions to release that 25% tax free bit to help himself out.

The money runs out next month. Not sure what he is thinking of but has nothing about his situation. He hasn`t even contacted his lender. He says he might have it valued for sale. Hmmmm, new build in 2005, I think he will have a nasty shock coming his way. What is frustrating is that he doesn`t seem to grasp the situation he is in.

He has been in trouble before and last time, because of divorce, managed to get himself out of a mess due to the release of equity.

Great guy but he never thinks things through. My goodness, he was only about a year into this mortgage when he announced to me he was thinking about buy-to-let. I put him off that one.

I guess all I can do is stand back and support him when it all goes wrong.

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