paying off credit cards

batty60

Hi . I need some advice for my son who has large debts on several credit cards. He has a good salary but the debts are eating it up.It is affecting his ability to pay rent . He has just moved into a new flat with 2 bedrooms and has advertised to find a flatmate to share expenses which will reduce his outgoings. No luck so far with flatmate ....Flat is through a letting agent... what advice can I give him about debts and flat?????
He has an overdraft with his bank but because he had over stepped a couple of times they wont give him a loan to pay off credit cards. But they have given him a cash only card so that he cant go over his limit again. He has poor credit rating now.
help!

CLAPTON

firstly why is he in these debts
has he changed his lifestyle so he's now living within his means

second step is to get him to work out a budget... see below.

http://www.makesenseofcards.com/soacalc.html

he needs to budget not only for day to day expenses but also the yearly and one offs and actually save up for these.

he needs to stop using CCs completely

he would do well to post his SOA (budget) over on the debt free wannabe board and get some advice there

why has he moved into a two roomed flat rather than just got a room in some elses flat?

Withour seeing his SOA its really not possible to give much advice.

batty60

Dont think he is using the CCs . And yes he has spent when he wanted . And lived a good life style. He used to share a house with partner but that ended 6 years ago. he has all his own furniture and wanted his own place ....he thought that a 2 bedroom flat would help to reduce bills and rent. If he has to move will he lose the months deposit?

CLAPTON

the starting point is his SOA

and of course that he takes responsibility for his own financial affairs.

whether he can move out depends upon his contract.. often there is a tie in for six months