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A Friends Small Debt, Getting Bigger...
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bubbles23_2
Posts: 30 Forumite
New to the forum. I've signed up on behalf of a friend who has a bit of debt. It could be a lot worse but i want to stop it before it ends up a bigger problem.
Here's whats owing out from what i can gather after a short chat on the phone...
Littlewoods catalogue - £190...Currently paying off ~£30 a month.
Very catalogue - £160...Currently paying off ~£30 a month.
Overdraft - £200...agreed to pay off £60 a month due it being a bigger charged overdraft before i think.
Utility bills from a previous house - £200...paying off £53 a month.
Avon - £110 unpaid from being an avon rep last year.
Some kind of Social Fund - ~£700! eeek!
Although some of the debt is being paid off slowly, she has 3 jobs already and cant find a reliable/normal 9-5 job or consistent hours to help a bit more.
I think the social fund and avon are just a case of 'ignore it, and hope it goes away' so i dont know what charges are mounting up with them or anything?
This is on top of learning to drive (to help find a better job) £45 a week, and rent at her mums at £180/month etc. It doesn't leave her much time to do anything and its taking ages to pay the things off.
After she's passed her test she'll want a car too to get to a new job, so i dont know how she'll pay for that either. She's considering getting a new loan to pay off the above debt and buy a car. i think its a bad idea!
Whats best to do to help get rid of this?... or any advice in general would be a great help!
Here's whats owing out from what i can gather after a short chat on the phone...
Littlewoods catalogue - £190...Currently paying off ~£30 a month.
Very catalogue - £160...Currently paying off ~£30 a month.
Overdraft - £200...agreed to pay off £60 a month due it being a bigger charged overdraft before i think.
Utility bills from a previous house - £200...paying off £53 a month.
Avon - £110 unpaid from being an avon rep last year.
Some kind of Social Fund - ~£700! eeek!
Although some of the debt is being paid off slowly, she has 3 jobs already and cant find a reliable/normal 9-5 job or consistent hours to help a bit more.
I think the social fund and avon are just a case of 'ignore it, and hope it goes away' so i dont know what charges are mounting up with them or anything?
This is on top of learning to drive (to help find a better job) £45 a week, and rent at her mums at £180/month etc. It doesn't leave her much time to do anything and its taking ages to pay the things off.
After she's passed her test she'll want a car too to get to a new job, so i dont know how she'll pay for that either. She's considering getting a new loan to pay off the above debt and buy a car. i think its a bad idea!
Whats best to do to help get rid of this?... or any advice in general would be a great help!
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Comments
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a quick glance, i estimate after 7 months at the current rate she will only have the social fund "debt" left to clear.
then either keeping the payments at the same will clear that around 5 months later on, or dropping the payments out will make it slightly longer.
has she attempted to claim back on the bank charges, maybe get that 200 reduced.
is there interest being added on top of the figures?
can she afford those total outgoings or is she short every month?
can she ask her mother to live rent free for a while to help ease the outgoings?
best bet in the first instance is to get her to do a statement of affairs listing all her income/expenditure/debts/interest etc. then some more knowledgable folks will pop up with some more suggestions.0 -
There's no interest on the debt to the Social Fund. If she goes back to a state benefit (JSA, IS, ESA) then deductions will be made automatically. I don't think deductions can be made from other benefits. It's a normal unsecured debt if not currently on benefits. The DWP can take court action, as can Avon of course.
But it does make sense to clear the high-interest stuff as a priority. Then get debt-free. Then save for a car.0 -
Thanks for the feedback so far both of you
Do you know at what point she'll have to start paying back the social fund? When do they start taking action against her?
The overdraft is already a reduced one i think. It was more previously but then they lowered it on the agreement she paid off so much every month.
She can afford to pay off the current monthly outgoings but only just, it doesn't leave her with much at all so she never gets to go out or anything with friends any more.
I'm not sure about interest rates so i'll have to ask/do research and post it later.
Who would she ring to find out exactly how much is on her social fund?0
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