A friend in need ...

meltus

This is a message for a friend, I have had money worries of my own for the last few years but I am now all but debt free (December I will be able to say I am debt free).

My friend of 25 years is on incapacity benefit and more or less cannot work or hold down a job, although he does try. His debts amount to about £8000 and he is extremely lucky to have to pay £0 a month with 0% interest.

When the sale of my house goes through, I will be in a position to offer them money on his behalf for a settlement, but I don't want to awake the debt collection demons that have unaccountably left him alone for some time.

Obviously as it is my money I am giving away I want to pay the least amount possible and also wonder if I am helping at all if it causes them to reopen dusty files?


Anyone have any words of wisdom?

Matt

jonesMUFCforever

You seem to be a very good friend indeed BUT IMO you should not pay off his debts. By all means help him in all other ways but don't lend him any money - it will eventually ruin your friendship.
How would you feel after paying off his debts that he has managed to get himself into more debt etc etc.

BWZN93

I agree - paying someone elses debts is always a bad idea. At the end of the day, I know he is your friend and he is having a hard time, you are better off giving him support and friendship, after all, you didnt get him into debt and unfortunately its a lesson he must learn by himself.

Secondly, if these debts have been knocking around for a while you will open up the dusty files and it will not benefit him in the long run as his credit rating will already be shot to pieces whether the debts get settled or not - its not going to benefit him in any significant way.

As he is on Incapacity benefit, no judge (if it ever came to that) is going to make him pay more than what he can afford so he isnt going to end up sleeping in a box and eating dustbin scraps.

If it were me, id be looking at securing my long term future as you may well need that money in the future if anything should happen to you - none of us have a crystal ball unfortunatley!

Jo xx

ffs

Perhaps you could consider using the money to help in other ways that would dramatically raise his standard of living. Doing something special regularly for him might offer you much better value for money. If you were proposing to loan him the money rather that giving it, then I would urge you not to.

1313

I too would agree with the others about not lending money to help friend out of debt.

There is a saying "Don't trouble trouble unless trouble troubles you!!"

However, I would think about how to tackle the debt. So all has gone quiet, but time and time again we read on this site how people never escape from the problem of debt. It will rear its head!!!

The debt has to be sorted. But do not lend the money!!!

fatbelly

Also, your friend should be very careful about working while claiming incapacity benefit. This is only counted as permitted work in strict well defined circumstances.

I agree with the previous contributors - and if the debt collectors have left him alone for a few years they may have effectively written the debts off and after six years of no contact they cannot enforce through the courts.