Big debt and no way to pay

BritSwedeGuy

A friend of mine (no, really) has allowed a debt of over £10,000 to pile up on her credit card over the last few years. She left home to study and has a part-time job but, of course, there's still a gap between income and out-goings. (So much for free education!)
Obviously a credit card was totally the wrong way to go but she's not the first to fall into that trap. She thinks her only option is to declare bankruptcy.
She's now at the stage where she can't even make the miminum payments and the credit card company say it's against their policy to negotiate. (I was hoping they'd accept repayment of the principle).
Firstly, why on earth did they extend such a line of credit to a young person with no assets and no disposable income?
What are her options? Surely the company would be better off accepting half the amount (which probably still leaves them in profit) rather than having to write off a bad debt?
She hasn't yet written to them, the only contact has been over the phone.

ms_london

This might be best on the "Debt Free Wannabe" part of the board..

What your friend needs to do is prepare a SOA. She needs to know exactly what she has coming in each month & what she has going out? Whether this is debts, or just standard outgoings (rent/travel/gas/elec/mobile/food)..

How long does she have left of studying?

Creditors should accept reduce repayments. It is in their best interest to receive some money of the individual rather than none at all - even if its just £1 a month!!

Your friend needs to decide what she can/cant afford & then contact her creditors one by one.

Could she shuffle her debt so that its on a 0% card or APR for life type card?

Perhaps you could get her to visit this site for herself?

xx

sicker

She could ask for help and advice from a CAB office(citizens advice bureau) in her area, they are often very helpful.

John

oops_a_daisy

try to get your friend to post her details on the debt fre wannabee threads - they will give him/her help there and point him/her in the right direction.