Debt advice needed

goldfinger1

Hi there, I hope I have placed this thread in the right section? If not please heave it elsewhere.
I desperately need debt advice for my son (24), who has landed himself in a lot of debt (£4000). I have offered to help him out, but we are not wealthy people and he is too proud to accept any assistance. Unfortunately he is unemployed and is finding it difficult enough to make ends meet, without having a portion of his benefit payment going on debt. I don't know the actual figures but I do know that a large debt is owed to the Royal bank of Scotland and another to a mobile phone contract. He can't afford to use the phone but he can't get out of the contract as there is still 9 months to run. If he fails to make the bank payments he gets hit with charges. The burden of debt is having an effect on his health and I worry about the consequences. I would like to offer him some suggestions in order that he can work his own way out of his debt situation. Can anyone suggest where to start? Any help would be welcomed.

MyLastFiver

My first thoughts:

The RBS debt - I assume this is a loan, CC or overdraft? If your son cannot meet the contractual minimum payments then he should offer what he can afford. He can arrive at this figure by completing a Statement of Affairs, in which he inputs all his income and outgoings. The debt charities National Debtline and CCCS can help him do this. See their websites or give them a ring.

The phone contract - a different kettle of fish - wouldn't like to say too much but someone will be along in a minute to help.

It's a difficult time to try and find work - all the best for him finding something soon.

fatbelly

MyLastFiver wrote: »

The phone contract - a different kettle of fish - wouldn't like to say too much but someone will be along in a minute to help.

The phones board will be able to give specific advice but my understanding is that it may be possible to switch to a different (lower) tariff if the contract is halfway through (which it sounds like it might be).

With debts under 5k he has the protection of being able to get an Administration Order if either of his creditors took court action, but I doubt that it will happen.

My Last Fiver's advice is sound, as usual.