Help for a 36yr old male still living at home?

JA1000

He will not pay it off in 2 years if the £1200 is just covering the minimums.

My friend says - If after 10 years he was only able to clear on average £100 per month then he wasn't that bothered about clearing it down and moving back home gave him the comfort that he could pay minimums cover his debt and still live the high life.

My friend also says, if he has 'recently met someone' why the hell would he want to move in so quickly with his debt. She is a student with 2 kids.

My friend thinks it is her that wants him to move in quickly!!!!

My friend keeps saying - There maybe trouble ahead......................with more debt

I would say stay at home and seriously make a dent into that debt!!!!

DVardysShadow

JA1000 wrote: »

He will not pay it off in 2 years if the £1200 is just covering the minimums.

My friend says - ....

???? He owes £22000, he is paying off £14400 every year. Plainly, he will be out of this in about 2 years, even if this is minimums. Unless some info is incorrect.

miamoo

Thanks for the reply yes your right during the 10yrs he hasnt spent the whole time re-paying the debt as fully as he should.
He did make minimum payments and keep spending on the cards as I said earlier. He was living beyond his means.
Then the minimum payments went up and up and he is in the position he is today.
He isn't living at his parents because he wants to, its because he has no money to move out (through his own fault I know).

I'm not sure what the 'my friend says' comments mean? and why you would think his girlfriend wants him to move in quick? am I missing something??

miamoo

DVardysShadow wrote: »

???? He owes £22000, he is paying off £14400 every year. Plainly, he will be out of this in about 2 years, even if this is minimums. Unless some info is incorrect.

Hi, sorry I am just passing on the very basic infomation that he has given me. He told me that the payments he makes only cover the interest and insurance, with hardly any actually being taken off the balance.
As I said I will get more accurate info when I speak to him and post an SOA

iamana1ias

DVardysShadow wrote: »

???? He owes £22000, he is paying off £14400 every year. Plainly, he will be out of this in about 2 years, even if this is minimums. Unless some info is incorrect.

Do you live on a planet where no-one charges interest then?

Minimum payments cover interest and a teeny tiny bit of the debt

bargainbetty

I think a couple of people are suspicious about his motives for moving out and his ladyfriend's motives for moving him in.

Have they been together long? If he moves in and has a job, she may lose her housing/income support benefits, which means he will be expected to contribute more to her rents etc.

How long has he known her? My mum used to say you should never move in with someone before you've known them a year - it takes you that long to find out if they pee in the shower.

Good luck to your friend - show him the boards and get him to post.

Willow_K

miamoo wrote: »

Hi, sorry I am just passing on the very basic infomation that he has given me. He told me that the payments he makes only cover the interest and insurance, with hardly any actually being taken off the balance.
As I said I will get more accurate info when I speak to him and post an SOA

Ahhh - insurance! I was wondering why paying £1200 a month against debts of £22000 wasn't bringing the balance down! (assuming an average interest rate of 30% APR that is only £6600 so paying £14400 should have some impact on the balance).

If it is PPI insurance he should consider cancelling it and claiming back what he has already paid - he could then use the reclaim to pay down a large chunk of the balance.

RAS

miamoo wrote: »

. He told me that the payments he makes only cover the interest and insurance, with hardly any actually being taken off the balance.

So if he had PPI, why, why did he not claim against it when he lost his job???

Right now, unless it will pay out if he loses his job again, he needs to get it all recalimed, with interest.

And further, he needs to post his SOA, but of rthe debts, he needs to list the end date for all loans and the maximum limit on the card for all CCs.

DVardysShadow

iamana1ias wrote: »

DVardysShadow wrote: »

???? He owes £22000, he is paying off £14400 every year. Plainly, he will be out of this in about 2 years, even if this is minimums. Unless some info is incorrect.

Do you live on a planet where no-one charges interest then?

Minimum payments cover interest and a teeny tiny bit of the debt

What I wrote works on a planet with 27% interest rates. Try it on an interest rate calculator before implying I am being daft.

GeorgeUK

Heehee, looks like one of you is looking at minimum payments in the strictest form of this and the other is looking at paying 14,400 pa.

Either way, he may not have a lot of money right now, but he is definately in a position to make inroads into the debt and be able to move on within the cest few years.