Girlfriend in too much debt....

Oldernotwiser

RAS wrote: »

Hi

As a general rule consolidation is a very poor idea. Apart from the fact that the monthly cost is lower, it usually requires longer to pay off the debt and costs MORE in total because the payments stay the same instead of reducing over time.

The other factor is that 85% of people who consolidate then rack up more debt. Ask a lot of folk on here who have done just that and often doubled their debt before having a real LBM.

Consolidation loans - the work of the devil!

arambol

Ok, the more I think about it I think the flat is a red herring. Her rent is 44% of her salary which isn't great but isn't unusual in London. In 12 months time she can move if her income remains the same but it will most likely increase. It wasn't beyond her means when she moved in but is now with the addition of the debt of her cards/ loan.

I think the best way forward is to say she's stuck with the flat. It's alot but relative to her current salary of 50k it's not extreme and she doesn't really have a choice.

I think I need to focus on reducing the £706 that goes out in debt repayment.

In addition the great suggestions here mean that she can remove or reduce her car, food, gym (tricky), iphone, haircuts and cat food.

I think £50 a week on food is fair. She can learn to cook and feed me at the same time ;-) So that saves £150 per month already.

Half the cat food to say £20, saving £20.

Hair cut every other month saving £25.

Get rid of the car saving £200+

That's a great start. It's just those pesky credit cards that are a killer but you say consolidation isn't a good idea. I think it's try for 0% cards then.

flutterbyuk25

If she sells car, cuts food budget to £100/month and stops the hairdressers each month she will have around £400/mth free to pay off debts!!

I live on my own and never spend more than £80/mth on food. Try get her to batch cook so she has a homemade ready meal in freezer for when she is tired.

If the gym won't let you cancel could you switch to a lower tariff there? eg weekend only?

x

In_my_dreams

You really are doing a lot for your girlfriend and she is lucky to have you, but exactly what is she doing about the situation she is in? At the end of the day you can do all the groundwork but it is up to her to try and stick to a budget.

RAS

In_my_dreams wrote: »

exactly what is she doing about the situation she is in? At the end of the day you can do all the groundwork but it is up to her to try and stick to a budget.

Unfortunately that is far too true.

You may want to show this thread to your GF but first find out if she will be appalled that you have discussed her situation, even anonomously or appalled that you have done so at all rather than suggesting she does the same for herself.

I know you mean very well but she is entitled to screw up for herself, or to sort herself out. Support her when she asks for help but respect her boundaries.

Ames

Check the iphone statements, my sister only recently realised, after 8 months, that she was paying £6 a month for insurance. It explained why all her bills had been way over what they should have been.

arambol

Thanks for the concern but we've discussed this at length and she knows I'm on here and no doubt will read / catch up later. I suggested I ask online and I came to you guys as I new I'd get some good advice.

She will listen and act on pretty much everything I suggest.... even the hair I believe. We do have a good relationship and she trusts me. She's concerned and she'll listen.

My issue is that I want to give her the best advice. Initially I thought consolidating her debts would be good advice but now I have learnt it probably isn't. Good job I asked.

Mrs.D

You sound like you really care about your g/f and she obviously really trusts you to share such intimate details of her finances with you.

Have you / would you consider moving in together?

arambol

I do care and I'm proud of her. She's had a rough spell but turned it around. If I had half her work ethic I'd be happy.

As for moving in, it's a good question and I guess possible in the future. Early days yet and I 'm also tied to a tenancy agreement. Maybe next year...

caeler

Are sellings things a possibility? I know you've mentioned the laptop but are there any large items that could pay off chunks of the debt? The budget is important and I think we're over focusing on the cats! I'm probably repeating but I'd focus on those credit cards and try and and obtain 0% deals (Card Tarting). It worked for me and really helped to start seeing those debts come down. At least with the loan its a fixed amount and you know when its paid off.

I can empathise with long hours and convenience food but I think some easy to prepare stuff for a couple of months won't hurt, I absolutely love Heniz tomato soup which I could happily live off and have when needs must! LOL

Good Luck.