Please help my brother

itsarichmansworld

Hi all,

Can you please help my brother out he's struggling now and I am trying but I know all you have plenty of advice and help.

Firstly he is claiming his bank charges back £500 from halifax they are saying he is not entiltiled though(staff account) he doesnt work for them anymore
so where do we go from there...

SOA

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Incomings £929

Outgoings

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Debts

Car 5000 no idea interest
Halifax CC 600 5%
Cap one 300 29.9%
OD 2000
GE capital 2500 16%
Secured loan 5000 17.3%


Outgoing monthly

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Utilities 30
mortgage 210 halifax
loan 210
credit cards 50
food 60
car ins 70 tried getting cheaper no avail
Phone and BB 29.99
mobile 17.5
Sky £41

Please I now its a hard one but any advice about contacting the creditors to freeze payment etcs He's behind on payments due to a job change.

He owes money to me and my mum, his credit rating is pants to no tarting etc...

Can anyone help please.

Toomuchdebt

What are the minimum payments on the cards and the loan?

My first thought is to get rid of sky.

itsarichmansworld

£210 for both loans
50 to cc's minimum payts

Sky is going, My first thought.

He needs to get his head above water just now token pyts etc just to live on,,,

Any advice?

CLAPTON

first thing then is to find out what he actually spends

his income is 929
his spending including debts reapyments comes to 508

so he has 321 unaccounted for ...best to start with this

but some ideas ...he pays car insurance but no petrol, car tax, servicing etc ....needs to find out all the annual and one off spends i.e. everything he will spend in the next 12 month, divide by 12 and add them to the monthly budget because he needs to save that amount so he can pay the bill when it arrives without borrowing.

60 for food seems unlikely unless he lives on takeaways in which case they need to be included
any socialising costs?
work lunches
clothes
boytoys
holidays
week end aways
sport/hobbies
etc

mortgage but no building or content insurance, council tax, water rates


get him to start a spending diary and write absolutely everything he spends
get him to sit down and think about all the yearly and oneoffs plus looking through bank statements etc.

itsarichmansworld

Thanks Clapton I'm trying to help him as much as I can your advice is excellent.
He is not living things like council tax etc he didnt include when w were doing this.
We dont pay water rates in Scotland.
The mortgage has the B &C'S included.
He just paid £80 for 6 months road tax.

Hopefully he'l listen to my advice and get on here. He looks the way I did before I found this site.
Please keep it coming

anyways he can make extra cash?

madduck

I would recommend that he approach one of the charities for independant advice and support. The 3 free debt support providers are CCCS, Payplan and CAB. You'll find the link to their sites at the top of this page in yellow type.

The hardest step is the first step - most of us on this board have or are still in the same position as your brother. It is tough - but please stick by him and give him all of the support you can.

jonesMUFCforever

There is mention of a secured loan which suggests he has a property.
Is there enough equity to release funds to pay off some of these debts to give him some breathing space.
Was he dismissed by Halifax because of conduct of his account?
There is no mention of Council tax, petrol, garage bills etc in his outgoings.

itsarichmansworld

he has equity we're looking at re mortgaging but halifax declined him...

He has an appointment with a ifa to get re mortgage started.

Madduck I'm still in a lot of debt too. I will stick by him I want to help I was burying my head in the sand before I found this site Think he's doing the same a wee bit

CLAPTON

yes try to increase income : overtime, parttime job or can he let out a spare room?

but he must find out where the money is going

you say he has just paid 80 for car tax ...so he needs to save £13 each month for the next six months to pay the tax in six months time or he will of course put it on the CC so he MUST add it to his monthly budget and all the other yearly, half yearly quarterly and one offs
(as a matter of interest how did he pay the tax this time?)

ignoring these non monthly spends is a major cause of people getting in to debt (everything's all right but the car tax/christmas/mums birthday 'unexpectedly ' just happened so i HAD to use the CC...noway these are predictable events )

CLAPTON

he should not consider remortgaging until he sorts out his spending. all that will achieve is building up new credit cards debts and within a year he will be back at square one except his mortgage/secured debts will be larger and the repayment greater.

income and spending sorted first, debt interest etc second