boyfriend's debt is spiralling out of control - help!

melt71

rchddap1 wrote:

The reason many people emphasised that you should not take on his debt is that you mentioned that he asked for your help in getting credit cards or a loan.

Sorry, that's not what I meant by asking for help. He asked me to help get him organised, ie to help him to help himself pay it off efficiently! IYSWIM He would never ask or expect me to help him actually pay the debts as firstly he realises I'm not in a position to do so, but he's also very proud and feels completely useless as it is being in debt and not being able to sort it out himself. He's rubbish with money (as are virtually all the men I have ever known including my dad!). I'm usually pretty good with organising finances, but I've limited experience of this type of problem as I've never had any credit card debt.

CLAPTON

When you sit down with BF have a look at each CC and check the balance, the minimun repayment and the APR. This is because there are several ways of reducing interest, life of balance CCs, 0% rate CCs or simply lower rate CCs. Loans, while sometimes being cheaper in the short term often lock you into high rates for long periods of time. Also check whether he has PPI (personal payment protection ) on any of the cards. Check also whether he has defaulted on any payments. Get him to check his credit files (he may be able to do it free online if he's willing to sign up for regular info but then cancel- but read the small print.)
As his situation is about to change you really need to consider both the 'now' situation and the 'future' situation....it would be madness to panic and make a bad decision now if matters ease in only a month or so.


post again when you're ready.

melt71

Also check whether he has PPI (personal payment protection ) on any of the cards.

Is that a good thing or a bad thing? I personally wouldn't ever have one again as I felt it was a waste of money last time I had one. Am I wrong?

CLAPTON

PPI when sold with CC or loans is always (well nearly always ) rediculously expensive and so should be avoided at all costs. If on reflection and studying the small print you do feel you need it.....although i can't see why someone without responsibilities would need one then go out on the open market to find a best buy.
In practice they often dont pay out, or they pay less that you expect, they have loads of get out clauses.