Tricky Loan Situation - Advices please

sparksharper

Hi

My partner lost her husband about 4 years ago and during the grieving process she suffered bouts of depression/anxiety and became alcohol dependent. (She's now made a good recovery by the way...)

During this vulnerable time she was befriended by her neighbours (a couple) and was persuaded to take out loans and credit cards in her name to cover their debts (they are self employed and would seem to have a dreadful credit rating). Often, these loans were described as critical - if they weren't forthcoming their business would have folded.

She has now moved in with me and her 'friends' have stopped paying the agreed monthly instalments leaving her with debts of approximately £12,000 and monthly installments of around £350.

We are expecting our first child in November and our income will reduce as a result. In addition my job security is not good at present and it is quite likely that I will lose my job by the end of the year.

We can currently afford to meet these payments but shortly this will not be possible. We are both very worried and it seems that there is very little we can do.

Does anyone have any ideas as to how we can improve this situation?

Mike

StuTheDon

Hi,

Was there anything in writing to prove this arrangement? Did she get them to sign a letter outlining the loans? How have the "friends" been repaying her unitl now - is it via cash/bank transfer etc?

There may be some options here but it will all hinge on what proof she has.

Stu

ILW

Have you spoken to these people to find out what is going on?

sparksharper

There is nothing in writing I'm afraid. As far as I'm aware (I'll double-check) payments were made to her in cash (but collection from her account by DD). She has spoken to them and she simply gets abuse back. Most of the time she is ignored though...