A friend in need!!!

BaytreeBoy

Hi all a newbie here who really needs some help and advice so where better to come then on this board.
Ok a little background to my problem, I have a close friend (this is true) who has got themselfs into a bit of a pickle and has racked up some debts I found this it out by pure chance and then my friend broke down and I decided that I would help them to clear their debts as they have no sense of the value of money and they are in a bit of a desperate situation.
I've done an SOA (see below) and I would like to add that they also have an overdraft of £1000 and when they got paid for this month they were still left £43 overdrawn so technically they have no money they also currently do not pay any minimum payments on any of their cards.
So albeit the debts are not huge (£5000) they are spread over several credit/store cards but I just don't know where to start so any help or advice would be really appreciated.
Thanks in advance.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1160
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1160

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 240
Management charge (leasehold property).. 0
Council tax............................. 41
Electricity............................. 10
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Works saving club....................... 200
Total monthly expenses.................. 641


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis Bank (visa)............842.02....0.........54.9
Capital One (c.c)..............658.91....0.........28.5
Barclaycard (c.c)..............1678.9....0.........24.9
JJB (s.c)......................186.61....0.........28.09
Next (s.c).....................196.39....0.........26.49
Evans (s.c)....................1339.57...0.........24.9
Additions (s.c)................162.94....0.........44.9
Total unsecured debts..........5065.34...0.........-


Monthly Budget Summary
Total monthly income.................... 1,160
Expenses (including HP & secured debts). 641
Available for debt repayments........... 519
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 519

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,065.34
Net Assets.............................. -5,065.34

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

charlyze2

Hi Bay tree boy.

im not very experienced with this yet but the one thing that jumps out at me is the interest rate with vanquis.
i would def make that card my first priority.

Also is that all the expenses your friend have. Do they acctually have that much money left at the end of the month?
if not where does it go.
Is there no tv? etc or do they live with their parents.
Also what about entertainment?

What about road tax, mot expenses and car insurance?

Hopefully someone better experienceed will come along and give you some advice

charlie

Cleosmum

What should the monthly debt repayments be?

Are they single?

You have petrol listed but no tax and nothing for the car listed in Assets.

And what is the works savings club for??

savingwannabe

Gosh i am out of my depth here as a newbie. Usually i say get rid of mobile and get a Pay as you go, cancel tv etc but then they would not have a phone at all.

Is it possible for them to take on another job. Bar work in the evenings?

Good luck, someone clever will be along shortly i am sure.

Goodluck and best wishes,

PNPSUKNET

200 savings club.....

babymoo

BaytreeBoy wrote: »

Hi all a newbie here who really needs some help and advice so where better to come then on this board.
Ok a little background to my problem, I have a close friend (this is true) who has got themselfs into a bit of a pickle and has racked up some debts I found this it out by pure chance and then my friend broke down and I decided that I would help them to clear their debts as they have no sense of the value of money and they are in a bit of a desperate situation.
I've done an SOA (see below) and I would like to add that they also have an overdraft of £1000 and when they got paid for this month they were still left £43 overdrawn so technically they have no money they also currently do not pay any minimum payments on any of their cards.
So albeit the debts are not huge (£5000) they are spread over several credit/store cards but I just don't know where to start so any help or advice would be really appreciated.
Thanks in advance.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1160
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1160

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 240
Management charge (leasehold property).. 0
Council tax............................. 41
Electricity............................. 10
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 they must use water?
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0 no tv at all?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 0 do you have a car?
Car Insurance........................... 0 again car?
Car maintenance (including MOT)......... 0 and again?
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Works saving club....................... 200
Total monthly expenses.................. 641


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0 no car?
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis Bank (visa)............842.02....0.........54.9
Capital One (c.c)..............658.91....0.........28.5
Barclaycard (c.c)..............1678.9....0.........24.9
JJB (s.c)......................186.61....0.........28.09
Next (s.c).....................196.39....0.........26.49
Evans (s.c)....................1339.57...0.........24.9
Additions (s.c)................162.94....0.........44.9
Total unsecured debts..........5065.34...0.........-


Monthly Budget Summary
Total monthly income.................... 1,160
Expenses (including HP & secured debts). 641
Available for debt repayments........... 519
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 519

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,065.34
Net Assets.............................. -5,065.34

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi, I am very new to giving advice on this but after lurking for a long while those are the things i have picked up on. Someone a lot more experienced will be able to help further

BaytreeBoy

Cheers people, my friend is currently staying with me for a while as there are a few domestic issues at hand so therefore the bills issue ie. water, t.v and so on is covered by me with regards to the car it's there mums which they use from time to time and provides just petrol as and when needed, the savings club is something done at there place of work which they are contracted into and comes to end in august with a return of £2100 but this money has to be given to their familiy (sorry don't want to go into her domestic situation too much) again the bills contribution rent and so on is what they have to pay to there family and a little to me!!, is that bad? oh yes the person is single.
Hope this helps a little.

babymoo

Why is she paying rent to her mum/family if she isn't living there? I know you said you don't want to go into the issues but it might help to give someone a clearer idea to help.

How long is she staying with you for?

3Dogs

One suggestion would be to open another bank account - anyone can open a BASIC bank account without checks - but make sure the bank she chooses is not linked to any she has debts with - co-op cashminder, natwest step account are such accounts. Then arrange to have her wages to go into that. Cancel all Direct Debits on the old account and set up the ones she need to keep on the new ac!!!!. This protects her wages from the banks as banks have the power to take money from any other account she holds to pay a debt.

Then contact CCCS, National Debtline, Citizens Advice Bureau or PayPlan for advice - they may suggest a Debt Management Plan where she pays them an arranged amount and they apportionate it to her creditors on a pro rata basis.

check out the charity debt advisors:
CCCS 0800 138 1111 (freephone) www.cccs.co.uk
National Debtline 0808 808 4000 www.nationaldebtline.co.uk check out 'Debt Remedy' on their site as she can enter her details and it will suggest possibe solutions without talking to anyone yet
PayPlan - also good but may try to sell you insurance, etc
Citizens Advice Bureau - check out your local CAB office

Whatever, she does, do not use a fee-based debt advice company

BaytreeBoy

My friend pays the rent because they have to (no choice) can't really say more than then that, They will stay with me for as long as they need or have too. Sorry if i'm being difficult in being clearer with some info as there is stuff I will not share ie. non-financial, I hope you understand.
The current outgoing monthly expenses will not change for the forseeable future.

Luckily she has no debts or other accounts with the bank she has her wages paid into.

Thanks.

Cleosmum

So the income is a joint income? Can either of them increase this?