Advice for my 24yr old son please

Irishrover

my son owes Lloyds bank 1,700 he took out the loan last year when he had a job . He managed to keep up the payments until this month, he is now at college, living in a dingy bedsit, on Housing benefit and has barely enough money to manage. There is no way he can pay Lloyds 69.00 per month, they have refused to lower the payments or assist him in any way. It looks like he is going to be taken to Court for non payment, he hopes to go to University next year, if he has a County Court judgement against him,will this affect his getting a student grant ? I have been advised he will not get a grant with a Court Judgement record. He is very depressed and in dispair.
Grateful for any advice please.

alijo_g

I think he should try a Debt Management Plan, which will pay off what he owes. He needs to take a hard look at his budget and see where they can cut back, to free up money to pay off the debt. He could also write to the bank and explain he is having financial difficulties and could they freeze the interest and accept fixed payments to pay off the amount he owes.

He can manage the Debt Management Plan himself, if he wishes. Click on the link below, select Debt Advice, then England & Wales, then the Self-Help Pack. This walks you through the process of creating a budget and dealing with the creditors. It includes sample letters and tips for dealing with creditors. It's here

https://www.nationaldebtline.co.uk

If he wants FREE and confidential help with a Debt Management Plan, he should contact their local CAB office or any of the following

https://www.nationaldebtline.co.uk
https://www.payplan.co.uk
https://www.cccs.co.uk

These are all charities or "not for profit" companies that help people with debts.

Good luck

nh

£69 a month? How long is the term?

Did he give his job up? If so, then he can't really complain that he now can't afford to pay this loan.

Why is he at college, can't he get a job? Going to uni is great but why take out a £17k loan the year before and why go back to uni when he obviously can't afford to?

This doesn't make much sense, though I am sure a debt helpline will be able to help him, as alijo has recommended. He should certainly go to them before defaulting as this will mess his credit rating up for years.

There are no student grants now, and I am not sure if he would be eligible for a student loan, I suppose so because the money comes straight out of your wages to pay it back afterwards when you are earning enough. So there is no need for them to worry about defaults.

I don't think they do a credit check on you before giving you a student loan, though I may be wrong. If he got a student loan, at least he would be able to service this other loan!

I recommend he gets a part-time job in a pub etc - £69 a month is not that much to make!

Irishrover

Hi thanks for your advice. He owes one thousand 7 hundred (not 17 K) mistake !
Briefly, he was working when he took out the loan, he had not missed a payment ,then he had an accident, he was knocked down by a taxi (which drove off, witnesses did not get his number) son was in hospital for weeks, was sacked for being off for so long, he did not get any compensation for accident as taxi driver was not found. Son was then attacked by a schizophrenic on a bus in Poole Dorset, was off sick again. He went to college as he could not find work. He is now suffering from depression , struggling to go to college. Cannot see a way out. I will probably have to take out a loan in my name to help him.

stuwilky

Irishrover wrote:

Hi thanks for your advice. He owes one thousand 7 hundred (not 17 K) mistake !
Briefly, he was working when he took out the loan, he had not missed a payment ,then he had an accident, he was knocked down by a taxi (which drove off, witnesses did not get his number) son was in hospital for weeks, was sacked for being off for so long, he did not get any compensation for accident as taxi driver was not found. Son was then attacked by a schizophrenic on a bus in Poole Dorset, was off sick again. He went to college as he could not find work. He is now suffering from depression , struggling to go to college. Cannot see a way out. I will probably have to take out a loan in my name to help him.

Is this not what the MIB are for? My brother was in an accident with an insured driver and got compensation from the MIB - Try speaking to a personal injury solicitor.

nh

Sorry to hear about your son't accident. Isn't it possible for him to move 'home' with you? If he is depressed he may need the company as well as the help with his finances.

He should make sure he tells his doctor of his symptoms (depression).

Could he really not get a job in a bar/restaurant to make the £69 a month?

Joe C, I have to say, that kind of comment is totally uncalled for.

frepol

No problems with student loan - you can even get one if you're bankrupt! Even if he gets a CCJ, who cares and make sure that you keep records of all correspondence with Lloyds - judge will not issue CCJ if you have been reasonable and they haven't!

daveboy

Maybe it's just me who thinks at 24 you should be able to deal with this yourself.

My family know nothing of how I deal with money.

Oh, I'm 24 and get back up when the world deals me a bad hand.

And I have been through situations involving depression and poor health. But I still go to work every day.

I'll be in a minority of 1 in saying that at 24 parents shouldn't be paying off the debt of their child. My personal opinion, so flame away as you usually do

David_Brent

Daveboy - you have a rather harsh way of looking at life! When it is a family member in need of help, I will always put myself out to help them to the best of my ability and if it involves finance so be it. We all learn from our mistakes and deserve a 2nd chance, no need to be made an example of.

SnowyOwl_2

Irishrover...my uncle was in a pretty bad car accident, some stupid 24 year old know it all who had taken his mother's car without permission and without insurance crashed into him, almost head on...24 year old on wrong side of the road. Anyway, my uncle nearly lost a limb and was in hospital...and in absolute agony... for many months, and in a wheelchair for many months after hospital. Because the person who caused the accident had no insurance there was no compensation however there is some sort of emergency compensation fund for cases like this. It is unfortunately very slow to come through. (He of course claimed his state benefits having been forced into a situation where he was completely unable to work for around two years by that idiot).

I do think it'd be worth checking back with CAB to ask if they would go over the events again to see if anything has been missed with regard to compensation.

And please get your son to claim as much as he possibly can - again CAB are good for this. While I am not working at the moment I have worked for 20 or so years and obviously paid tax all that time - I am very glad to have paid my dues so that people such as your son and my uncle can recover their health and happiness and in due course rejoin the working majority as both so obviously want.

I would take issue with your son's employers sacking him after the accident. Raise this with CAB as well - if your son was unable to work then there may be something under the Disability Discrimination Act which would allow your son to take them to tribunal, even if he had been there less than a year.

Certainly encourage your son to reconsider living alone. Not only is it expensive to live alone, but it's so easy to just sit and brood about life's misfortunes when there is no company to distract. This can't be good for his depressed state. He could move back with you, or look into a flat share or lodgings, then get into halls of residence at uni.

And well done to you for being so concerned, tolerant and supportive of your son and the situation he has been forced into.

Irishrover

Many thanks to you all for your kind advice.