Hi all, Need advice

Kidda87

Morning All,
I have just posted this in the get help from a CCCS advisor topic but i wanted to get everyone elses view on it aswell.

Il try and cover all the bases so you know the situation I have.

First off, I'm a complete and utter newbie in terms of debt and would like to point out its not me that is actually in debt its my girlfriend. She has stupidly taken out 2 yes, thats 2, pay day loans! These 2 payday loans have crept up and she now owes £950. She has a credit card (I think its Barclays) which she owes around £300. She cannot get another credit card. Also, she was just about to go with a debt management company which, I have told her not to after reading one of the guides on the website.

The main worry I have is the payday loans. I have told her I will try and get a credit card and pay them for her if it is possible. What I want to know is, is it possible and which offer do I look for? By that I mean is it the 0% interest on balance transfers? (see I told you I'm a newbie!)

I’m presuming I will be accepted for the credit card straight away as I have had absolutely no debt (I’m 23 next month) in the past, car is paid for, my car insurance is paid for (£1100 is just scandalous). I think I handle money quite well and have always been able to save very well, I do still live at home with my parents which helps, but I just bought my car for £5000 so in all my savings have virtually gone (car and insurance = £6100).

Basically what I'm asking is:
1) Can I pay someone elses debt by credit card (she will pay me £200 at least per month by the way)
2) If possible, do I look for a credit card with 0% balance transfer such as EGG with 0% balance up to August next year?
3) I do have some savings left but am reluctant to part with them over this, shall I bite the bullet and do it, rather then the credit card route?

Sorry for the long post but as I said, saving and money handling I’m good at..Debt I have no clue what so ever!


Thanks for your help in advance!

andys15

Kidda87 wrote: »

Morning All,
I have just posted this in the get help from a CCCS advisor topic but i wanted to get everyone elses view on it aswell.

Il try and cover all the bases so you know the situation I have.

First off, I'm a complete and utter newbie in terms of debt and would like to point out its not me that is actually in debt its my girlfriend. She has stupidly taken out 2 yes, thats 2, pay day loans! These 2 payday loans have crept up and she now owes £950. She has a credit card (I think its Barclays) which she owes around £300. She cannot get another credit card. Also, she was just about to go with a debt management company which, I have told her not to after reading one of the guides on the website.

The main worry I have is the payday loans. I have told her I will try and get a credit card and pay them for her if it is possible. What I want to know is, is it possible and which offer do I look for? By that I mean is it the 0% interest on balance transfers? (see I told you I'm a newbie!)

I’m presuming I will be accepted for the credit card straight away as I have had absolutely no debt (I’m 23 next month) in the past, car is paid for, my car insurance is paid for (£1100 is just scandalous). I think I handle money quite well and have always been able to save very well, I do still live at home with my parents which helps, but I just bought my car for £5000 so in all my savings have virtually gone (car and insurance = £6100).

Basically what I'm asking is:
1) Can I pay someone elses debt by credit card (she will pay me £200 at least per month by the way)
2) If possible, do I look for a credit card with 0% balance transfer such as EGG with 0% balance up to August next year?
3) I do have some savings left but am reluctant to part with them over this, shall I bite the bullet and do it, rather then the credit card route?

Sorry for the long post but as I said, saving and money handling I’m good at..Debt I have no clue what so ever!


Thanks for your help in advance!

Yes I would bite the bullet and use my savings, as she is paying you back £200 per month. If you get a credit card, then you will be paying higher interest, than your savings will get. Its a no brainer in my opinion.

ithomso1

Hi Kidda, let me just say i'm in a very similar situation with my girlfriend, although are not payday loans, and is instead CC debt, the principle is the same I believe?

Basically what I'm asking is:
1) Can I pay someone elses debt by credit card (she will pay me £200 at least per month by the way)

Yes, I transfered around £3500 of Credit card debt to a account I openeed.

2) If possible, do I look for a credit card with 0% balance transfer such as EGG with 0% balance up to August next year?

I've recently done this, and the best offer I found, because of the 0% Fee was Santander (And £100 for opening a new account,)
There's a whole section on MSE though.
3) I do have some savings left but am reluctant to part with them over this, shall I bite the bullet and do it, rather then the credit card route?

This is all your Choice, if you could get a 0% Credit card, + 0% Fee then I Would say, set up a standing order to pay it off for the interest free period.

HOpe that helps.

Many THanks

GeorgeUK

If you are going to take on her debt, you need to get it in writing that she agrees to pay this off.

It is not just any 0% card you need - only a few of them allow money transfers as part of the promotion (such as Virgin). It is a card that does 'super balance transfers' that you want.

I would try to get the card first, then see if you need or want to use any savings.

andys15

GeorgeUK wrote: »

If you are going to take on her debt, you need to get it in writing that she agrees to pay this off.

It is not just any 0% card you need - only a few of them allow money transfers as part of the promotion (such as Virgin). It is a card that does 'super balance transfers' that you want.

I would try to get the card first, then see if you need or want to use any savings.

But it will cost the OP 4% to do a SBT. If the savings are there, not doing much, and his girlfriend is paying him back £200 a month, then it will be paid back in 5 months. Why pay nearly £40 for a SBT.

GeorgeUK

I wouldn't want to use all my savings - just incase.
It's a matter of preference.

And she would be paying the £40

andys15

GeorgeUK wrote: »

I wouldn't want to use all my savings - just incase.
It's a matter of preference.

And she would be paying the £40

Yes but if he got a Credit card to repay it will take a few weeks to apply and get the card etc etc. If he used his savings he could pay it all of today, and who knows what special favours he could get tonight if you know what I mean.

Hannah_10

I'm not convinced about how you getting into debt is going to get her out of debt. The debts just been shoved over.

She needs to get herself out of debt, not you. I would say don't go down the route of picking up a potentially very unpleasant credit card debt when there are ways she can manage what she's already got.

If she can give you £200 a month then she can get the interest frozen on the loans she has and pay them £200 a month instead. Yes so that's a lot of work for her and she'll have to send a lot of letters, but she will then have sorted out her own mess and thats better than dragging another person into it and risking fouling up a good relationship and a deserved good credit history.

I would say advise her to ring the CCCS or National Debtline and deal with her debts as an independant individual and leave you out of it because you're gonna risk making relationship a hero/victim thing, not a meeting of equals.

"You save yourself or you remain unsaved." - Alice Seabold

Kidda87

Hannah_10 wrote: »

I'm not convinced about how you getting into debt is going to get her out of debt. The debts just been shoved over.

She needs to get herself out of debt, not you. I would say don't go down the route of picking up a potentially very unpleasant credit card debt when there are ways she can manage what she's already got.

If she can give you £200 a month then she can get the interest frozen on the loans she has and pay them £200 a month instead. Yes so that's a lot of work for her and she'll have to send a lot of letters, but she will then have sorted out her own mess and thats better than dragging another person into it and risking fouling up a good relationship and a deserved good credit history.

I would say advise her to ring the CCCS or National Debtline and deal with her debts as an independant individual and leave you out of it because you're gonna risk making relationship a hero/victim thing, not a meeting of equals.

"You save yourself or you remain unsaved." - Alice Seabold

Thanks Hannah, I see your point but the only thing I can see wrong with that is that she has been refused a loan from her bank so therfore the Pay-day loans are just going to add up, so I dont have the time I would want to sort her problem out. I asked her for the breakdown on who she owns and what (I now have all her log in details etc) one of the Pay Day loans charge 2300% APR!!! I mean what the hell how can anyone get away with that, on the other side i dont know how anyone can be so stupid to take them out (all this was done without me knowing, if she only would of asked for cash, I have probably spent the same ammount on prezzies and nights out the past year).

I think its looking like dipping into saving time, the savings were for a certain ring but looks like I'l be putting that back for a few months now dosnt it.

andys15 wrote: »

Yes but if he got a Credit card to repay it will take a few weeks to apply and get the card etc etc. If he used his savings he could pay it all of today, and who knows what special favours he could get tonight if you know what I mean.

I like your thinking!

Hannah_10

Right the reason you don't really wanna be looking at a credit card or a paid debt-management company (who are pointless by the way as there's nothing they can do for you that CCCS, National Debtline or the CAB wont match or exceed and they're totally free) is this...

Because if she looks at a debt management plan in her own name and involves one of the big three chaities I just mentioned then that interest and those charges get frozen. Yes two thousand three hundred percent APR is a scandal I totally agree, but when I'm suggesting she pays it back I'm not suggesting the interest keeps rolling on- good grief no way!

Get her to get hold of one of those charities and get thier help, not just advice but full on involved advocacy if she can (the CAB are good for that). The interest can be stopped, if she wants to sort herself out.

fermi

Please try not to quote spam posts if you don't mind. Thanks.

http://www.moneysavingexpert.com/site/forum-faqs#issues

Please don't quote any post that you believe is spam, as this causes the team more work