Need Some Advice Please !

GunJack

iffy,

without wishing to sound rude, I think the first thing you as a family need to do is wake up and smell the coffee.

To say your "only problem is the interest" shows a naivety of the highest order, £90k of debt on cc's is a horrendous sum.

From the look of things, you don't have any leeway to shuffle, esp. with the Citicard showing almost 30% BT rate.

To be honest, I think you need some professional help with this one. Good intentions are one thing, but a serious look at your overall finances with a financial/debt adviser may be your best option.

Sorry if this post sounds preachy, but I'm honestly astounded that so much unsecured debt can and is allowed to be run up without any intervention by anyone until, you imply, fairly recently.

Good luck with this, and don't forget there is huge amount of good advice spread throughout this site.

robnye

you havent got much leeway, without getting a nother card.....

you could transfer some of the debts to what there is of the credit remaining on the lower interest cards (taking into account the 2%+ fees)

so in reality...... raising funds from elsewhere seems the simplest route


good luck

toomanyshoes

First of all thanks for making me feel better about my debts. No consolation to you I know but thanks anyway.

I used to be an adviser at the Citizers Advice Bureau and their specialist debt advisers are really good at getting interest frozen, amounts owed reduced, deals struck or, in this case, they may well advise bankrupcy (depends on what the other relevant factors are of course) but I'd agree with the person above who suggested the CAB.

Free advice, and if your local branch has a debt specialist then its free advice from an experienced and very well trained soul.

Good luck.

iffyh786

Thanks robnye.

I will be applying for another CC in a couple of months as I had applied for the MBNA one recently(August). Do you think It would be ok to apply after 3 months or do I need to wait until 6 months are up?

I was going to do a BT to the CITI card.....I know it is at 27.9% (trying to get this down if possible), but just so that I can get started with the shuffle.
Then once I have a new CC I will BT from CITI, hopefully in a month or two.

This is the only way I can see of getting started with the shuffle.

Just hope that this is the right approach.

Please let me know if I am way off the mark?

iffyh786

toomanyshoes wrote:

First of all thanks for making me feel better about my debts. No consolation to you I know but thanks anyway.

I used to be an adviser at the Citizers Advice Bureau and their specialist debt advisers are really good at getting interest frozen, amounts owed reduced, deals struck or, in this case, they may well advise bankrupcy (depends on what the other relevant factors are of course) but I'd agree with the person above who suggested the CAB.

Free advice, and if your local branch has a debt specialist then its free advice from an experienced and very well trained soul.

Good luck.

It nice to know I made somebody feel better. :j

Just found about all the is debt recently, so it was a huge shock! :eek:

But am positive about getting this situation rectified.

All advice is appreciated! Thanks!

Emmzi

iffy,

just a question - if this is your parents debt - why do you have to 'fix' it for them?

Depending on their circumnstances, a debt management plan, an IVA or bankruptcy may be the best way forward for them. But they won't face up to this if you are 'taking care of everything'.

Just a thought.

iffyh786

Emmzi wrote:

iffy,

just a question - if this is your parents debt - why do you have to 'fix' it for them?

Depending on their circumnstances, a debt management plan, an IVA or bankruptcy may be the best way forward for them. But they won't face up to this if you are 'taking care of everything'.

Just a thought.

Hi Emmzi,

My parents have faced up to situation and that is why they have told me everything. I feel that it took great courage for them to tell me about all of this.

They have asked me to help out and I feel it is my duty, as their son, to help them. We as a family are very close and we are all pulling in the same direction!

With the help of going through all the info on this site, I have already got them to cut back on alot of things and save on others.

We are getting there slowly but surley.:D

mrbigd

With that amount of debt you need to get the interest stopped immediately otherwise the debt mountain will continue to grow.

I don't know what others have done in a similiar situaiton but when I was unemployed for 9 months went to Consumer Credit Counselling Service, a free service.

http://www.cccs.co.uk/media/Article.aspx?ArtID=PR20050518

Its a free service, who plan a budger help contact all the companies your parents are in debt with. You must then keep to the minimum payments which are made to CCCS who pay you debtors, they pass on the whole of your payment.

I am not here to make moral judgement but can't believe anyone is nieve enough to get into CC Debt of £90K.

This company were excellent and enabled me to get back on my feet quickly whilst protecting me from further interest.

Emmzi

You sound like a good son. I bet they're dead proud of you.

I guess some of it depends on their age, too, and how long they have to pay off 90k. You do need to be careful that it all doesn't just move into your name though.. then you are legally responsible for it should (heaven forbid) anything happen to them.

I really would strongly suggest they go through their options with a debt worker from citizen's advice, Payplan or CCCS. It may be that struggling to pay it all off is not their best choice. It may be that an option that would freeze interest/charges on some of the accounts would be better for all of you. If they can't get any more credit, that should be a red light that something is seriously wrong; possibly more than son can fix on his own?

I'm also pretty sure that, however well intentioned, moving the debt into your name is also not the answer. Lensding between relatives leads to many disasters - the loans and debt free wannabee boards have loads of examples of people who thought 'it'll never happen to me' and ended up wrecking their credit rating, losing their home, etc..

Just look after yourself as well as your folks.

xx

iffyh786

Thanks Emmzi.

We will be having a meeting with their financial adviser very soon.

When I worked out everything and found how much they owed on CC, I can tell I was not very happy. :mad: 90K is not a small amount :eek: , but at the end of the day I have to help out.

They have helped me alot through out my life.