Help..in Debt And Struggling

delboypass

Im posting this on behalf of a friend because I am trying to sort his life out but am starting to pull at hairs.

He has about £70,000 unsecured debt.
He has equity in a house above this figure, probably about £100k.

The problem is he is really struggling to pay his debts.
I have already made him write to his creditors and get them to freeze the interest payments and lower repayments. That worked fine til he missed a few payments and he is rubbish at keeping details although I drill him every night about keeping good records.

Now he has been switched onto paypal. He is in his 50's and only gets a salary of around £20k a year.

He pays paypal about £500+ a month and also has 2 morgages on top that he is paying off about £80+k .

At this rate he will be paying off his debt for 15+ years as no doubt he will retire in about 7-10 years.

Is there any way to reduce this debt quicker without going bankrupt as he wants to keep his house for sentimental reasons and for his family (single parent)

Once in Paypal, can you offer the companies final settlement offers? I was thinking about 30% to start with and perhaps a friend could help him out with money. Does anyone have any standard letters fr asking for a final settlement and can forward to me please?

Please help
Del.

fatbelly

I think the thing here is to talk to Payplan. Yes, they do them. See here

So he's got a friend with 21k available!!!

An IVA comes to mind as another way forward. And he could fund himself. Payplan have a sister organisation that does IVAs. I wonder why that wasn't recommended to your friend at the time.

delboypass

Based in Scotland, not england.
Only reason equity in house is because of rising house prices. Unable to remorgage though. Believe IVA's are only for English...?

Del.