Which way to do things is right in this situation?

Thorogood

Over the last 3 years my boyfriend has been getting in debt. Compared to some it only a minor amount, but I'm worried things can quickly spiral out of control.

He has a loan which costs £155 a month
He still has just over a year left of paying this off

A credit card with Barclay - £4,075 (min monthly payment £100ish)

a credit card with Halifax - £1,018 (MMP - £40 ish)

And he recent needed money for new tyres which I let him use my old credit card to buy (on the promise he pays it back) - £500 (MMP - £30)

Meaning he is looking at around £7k (not including interest)

His other monthly payments include car payments, car insurance, fuel, rent. He bacsically has more money goin out them coming in.


I've been trying for the past 2 months to find a credit card company that will do a balance transfer for the entire amount, so he is only paying he one card. But no banks will give him a card for the amount needed.


This friday he received a phone call from Baines and Ernst, which he got quite excited about, as they made everything seem so easy and positive.
I was reading through the forms they sent today and felt something wasn't right.
So i started looking online, and can't find a single good comment on them.

I have told him this but he won't listen, I suggest looking into CCCS which has been suggested on a number of forums, but he says he's never heard of them, but he has of B&H- therefore trusts them more.

I know he just want the easiest and quickest way to get out of debt, but I am very worried for him.

Can anyone help suggest another way of making payments easier?
He wants to only pay one sum rather then 4 or 5

Do CCCS offer the same a B&H ( you pay them one sum of money, and they share it out between creditors, and also freezes interest)

Is another loan a better option as a credit card tansfer doesn't seem to be an option?

Thanks for any advice you can give me

beanielou

Hi and welcome to MSE.
CCCS would do the same as B & E BUT without charging a monthly fee.
He really needs to look at why he got in to debt so that he can also address that.

MilneBay

Hi Thorogood
I think you've already identified the problem - he has more going out than coming in and it is this that needs to be addressed. Is there any way he can up his income? Over time, part time job - even just temporary Christmas work to get the debt under control?
You need to get him to do an SOA (statement of affairs) - sticky at the top of this board - to work out where his money is going and where you can cut back on expenditure. If he can't get on top of this - reorganising the debt is only likely to lead to the debt growing.
You need to sit down with him and go through bank statements and work out a realistic budget in order to assess the situation before you make any decisions. If he will let you work out his SOA you can then post it on the forum and people will offer advice

Standingtall

Hi there. Bainst and Earnst are lying in any case as they cannot promise that his creditors will freeze interest! Read around on this forum and you will see just how fickle creditors can be! Get your boyfriend to read them too if you can. It has also bees suggested that creditors 'play' better with the charities Payplan and CCS. Good luck

katsu

B&E will cost him money, CCCS and Payplan are free.

He will be in debt longer with a paid for DMP with B&E as less money will be paying off his debts.

Try telling him that and see if it changes his mind.