looking for advice for nephew

jaynemaria

My nephew has just broke down and told me the full extent of his debts. He is self employed and is now working 6 days a week at his normal job and then is working on call nights 7 days a week to try to cope.

Basically he is two months behind with mortgage, £1400, £1200 debt with utilities, and also has £8000 CC debt, £1000 overdraft £5000 with welcome finance, Loan 1 £2500, Loan 2 £6000 he had a van that was on hire purchase repossessed two years ago which is still incurring charges. Also a CCJ from a few years ago

From what I can gather, he pays
WF £250 a month
Loan 1 £55
Loan 2 £145
cc £210
OD £100
Van that was repossessed £150
CCJ £100

none of the above are secured but obviously the CCJ needs to be paid

I just want to check what I have told him is correct. Ive told him to basically forget for the moment paying these unsecured debts (carry on paying the CCJ)and send them letters offering token payments and to plough the money into getting his mortgage and utilities up to date.

Am I right in thinking that this is the right way to go in the first instance?

Thanks

RAS

I though Welcome Finance was often secured debt?

he needs to speak to one of the debt charities ASAP, either CCCS or NDL.

If he has a bank account with anyone to whom he owes money into which his income is paid, before he does anything esle he must open a new basic bank account tomorrow. Then shift his income over and his mortage and untility payment over. Make these standing orders if possible.

Once he has done that, he need to stop the DDs on the cards, the OD and loans 1 and 2.

Check out the van and Welcome Finance before stopping them.

If he writes to his mortgage provider and utilties, they may well be prepared to come to a payment agreement. make sure his Council tax is up to date, before he gets bailiffs letters.

jaynemaria

Thanks RAS, council tax is the one thing that he is up to date with, The welcome finance he is sure its not secured on the house, and the van was on hire purchase but as I said this was repossesed two years ago, He changed his bank account about a month ago to one of those accounts where he pays a monthly fee, and they manage his account so he cant go overdrawn.

RAS

jaynemaria wrote: »

He changed his bank account about a month ago to one of those accounts where he pays a monthly fee, and they manage his account so he cant go overdrawn.

He needs to get rid of that. He can have the same services for no fee from almost any bank in the country. It is called a basic bank account, requires no credit check, offers a debit card and DDs but no OD facility.

More info coming up.

RAS

Ok

Info on basic bank accounts http://www.moneymadeclear.org.uk/pdfs/bank_accounts.pdf which allows him to compare offerings.

You could try Co-op cashminder (you open by telephone or by going into a branch).

He should move his wages and priority direct debits to another account.

And link to debt advisors list http://www.moneysavingexpert.com/loans/debt-help-plan#help