Dad in a mess..

Littlemiss-lotsofdebt

Just as I get myself sorted - it turns out my dad gets himself into a mess!

My dad bought a washing machine and a freezer for my cousin on his credit card, as my cousin doesn't have one and didn't have the money at the time (I didn't know this at the time). My dad then stupidly came to an agreement with my cousin that he would have the credit card statements sent to my cousin's house and he would pay them as a way of paying my dad back.

It now appears that my cousin has only made 2 payments and the credit card companies have sent threatening letters to my dad. My dad has spoken to them and found out exactly how much he is in arrears and has agreed to clear these next week, but is now panicking about the bills and talking about some company called First Stop who have contacted him with some bull about being able to write off most of his debts.

My dad only owes £3000 so I'm planning on looking at his SOA tomorrow and seeing where we can cut back. Balance transfers are out of the question given this latest setback.

My dad then needs to ensure my cousin pays him a fixed amount every month but I can see him having problems getting the money.

Any ideas on this one guys??

Ivrytwr3

£3k on a washer and freezer? Or is this a total of £3k he owes?

How about your dad having a word with your cousin and if that doesn't work it will be more than likely a claim in court.

matt4504

Legally the debt is in your dads name so he just has to pay it doesn't he? I know your dad and cousin had a verbal agreement but I don't really see how you'll get your cousin to pay it.

Littlemiss-lotsofdebt

Its £3k in total, I think he may have bought some other things for my cousin and a few things for himself, but the bulk of the debt is my cousins.

From what I gather, my cousin is remortgaged up to the hilt, has provident loans, catalogue loans and if he can't afford them, he just doesn't bother paying! :mad:

Littlemiss-lotsofdebt

matt4504 wrote:

Legally the debt is in your dads name so he just has to pay it doesn't he? I know your dad and cousin had a verbal agreement but I don't really see how you'll get your cousin to pay it.

I know - I wish he'd have told me before he did this. He feels so let down but knows its his own fault for being so trusting.

flowerofscotland

Does your cousin have an income? Does he have a bank account? Ideally the cousin should set up a weekly or monthly standing order from his bank account to your dad's. This should go into a bank where your dad can check the balance online on the day it is due and immediately chase up your cousin if a payment is missed. Interest and charges should be added to the amount that the cousin owes and of course your dad needs to keep a record of payments and outstanding balance.

And if this sounds as though I am speaking from experience, I am - families can cause a lot of grief - part of my debts are loans to family members and I am finally getting a repayment of £10 per month using the above method :mad:

Littlemiss-lotsofdebt

flower - yes, my cousin does have a bank account and this sounds like a good idea, but the bank account my dad has is basic one with Barclays and they do not allow online banking!!!

flowerofscotland

Littlemiss-lotsofdebt wrote:

flower - yes, my cousin does have a bank account and this sounds like a good idea, but the bank account my dad has is basic one with Barclays and they do not allow online banking!!!

I only suggested this because I found I needed to keep checking and act immediately if a payment is missing. Does your dad have a debit card so that he could check his balance at a cash machine on the date the standing order is due? Or is telephone banking an option?

Littlemiss-lotsofdebt

His card is a cash card only so he could certainly check through mini statements.