Some Advice?

rjtyrell

Hi,

I am about to move in with my long term girlfriend, and I know she has approx 11K worth of debt.

I am determined to help her realise that credit cards are not the answer, as her response to when I mention her debt is ' its not your problem'. Well if I am going on the mortage then I don't want her debt affecting anything later. So I am after some advice, her debt is:-

Credit card 1 - £1600
Credit card 2 - £2500
Loan - £7000

I would a) obviously want to move all credit card debt on to a 0% interest card for as long as term as possiable - any advice which is best?

And also could I use this 0% card to pay back her 7K loan?, then obvioulsy year after year move the amount till it is paid back.

She is in the lucky position where every July she recieves a bonus last year it was after tax approx 4K, so if she put her mind to it and had the 'lightbulb' moment so could clear these easially.

Advice please,

Thanks in advance.

Always_Marvellous

As someone who has a lot of debt and got married (recently) to someone who is debt free - I sypathise. It took me a long time to tell my now husband how much debt I had and even longer to let him help - we are still struggling now to get a handle on everything.
I don't think anyone who doesn't have debt quite understands the capacity for a person in debt to convince themselves there isn't a problem - she sounds like a classic denial case.
There are loads of useful articles on the site and a brilliant credit card section - I would look there for the best advice.
Good Luck!

CLAPTON

you need to get her on board about addressing the underlying problem of why she is in debt. Shifting debt from card to card, while reducing the interest paid(good) doesnot however stop the spending habits that is causing the debt in the first palce.

try to get her to come to this board and post a statement of affairs (SoA) listing all her details of income and spending and debts details.

rjtyrell

Thanks for that, she is a classic denial case, trust me!.

Dolly_Smith

in which case she needs to sort out the spending before you think of consolidating or moving the debt around. Otherwise it will just get bigger and you'll be dragged along for the ride!

rjtyrell

Thanks for that everyone, I will do my best over the weekend to get her SOA done, as I have told her we need to go through her accounts etc to claim unfair bank charges.

Hopefully when we go through all of accounts she will see what see doesn't want to see! and make her take some action.

CLAPTON

do emphasis the positive things about being debt free...like it must be costing 200-300 per month in debt repayment that a 2,500 upwards a year..think of the nice things you could do with that. if she is only paying the minimum on her credit card remind her that it will typically take more than 10 years to pay them off. ok there will be some initial pain but the result will be worth it.

rjtyrell

Cheers Clapton, thats good advice it is very easy to get very negative about the debt issue.

The one positive is that she has an MGTF which is sitting in garage and has only done 4K miles, it is only used at the weekends as she gets the train to work. Having a quick look on autotrader she could get 9K for it, 2K on another car a clio or something and then she could clear 7K of the debt straight away.

Would this be a good idea, or is she better keeping the car as it is completley paid off?

CLAPTON

yes selling the MGTF is an excellent idea...not only can she reduce her debts and so save the interest but potentially can reduce insurance etc. in fact if you have a car does she need a car at all if its only to be used a weekends

Mizz_Pink

Hiya,

You sound a really nice guy and the help and and support you are giving your girlfriend is brilliant.

I would speak to her about her car, the best thing to do is sell it.

I have just got married and we hope to have a family next year, I really want to be debt free as its the best way to start married life. Hubby is debt free.

She needs to have her ligthbulb moment I think.

Is there any clothes/shoes/handbags/boob implants she could sell on the Bay of E ? (Like last nights Your Money Or Your Wife prog) ??????

If she has trouble geeting a 0% card then maybe you can apply and transfer it off.

rjtyrell

I also think the car, is a good thing to get rid off. Her insurance is £50, also the road tax is £160, so all in all she will save around £760 a year.

And I'm sure see has some clothes and old handbags she could sell, its just getting her to part with them that might be the issue!!

Half the problem is she works in London and the people around her earn more than she does and she gets caught up in there culture of spending, they have the money to pay the bills and she doesn't - harsh but fair I'm afraid.