Discovered Girlfriends payday loans. Help!

angel_rainbow

Is it the end of the world if she does go bankrupt? Of course not! Yes her credit rating will be shot but it will teach about budgeting and being accountable. It might therefore be just the thing she needs to clear the debts, learn a valuable lesson and move on with her life.

paydayproblems

I agree in many cases bankruptcy is a good option for people in debt.

This however is a situation that can be resolved, with a bit of help.

carslet

paydayproblems wrote: »

Basically I've said I want to see what the repayment plans are from the various Lenders following the cab letters. If this is at a manageable level that she even stands a chance with and whether they have stopped adding interest.

£3k isnt a huge amount but at £600-£700 monthly interest she is at tipping point of being able to pay rent and travel to work and still eat, it tips much more and shes not able to afford to pay the interest. Its either loan from parents or bankruptcy. I'm not having her end up bankrupt when there are other options.

I'm annoyed its gotten to this, but at the same time we have no time for feelings like that when things need dealt with.

i think you should try to get it paid asap even with the parents help, i usually say no to this because it does not help people they really have to do it for themselves, but at 600-700 monthly interest, i would do anything to get htis out of the way,

and i dont think bankrupt is the way to go, it is the very last resort,

BlushingRose

paydayproblems wrote: »

This however is a situation that can be resolved, with a bit of help.

Has your g/f had her lightbulb moment? Is she really wanting to get this sorted out?
I ask only because, if she hasn't, then it will be more difficult for her.

I love the fact that she's got someone to care for her. You said you went to uni at 29 (so did I) so am I assuming rightly that you're about 33 now? Is she a similar age or younger - age shouldn't make a difference, but sometimes it really does.

paydayproblems

Shes early 30's too.

She was at CAB last month, so I think she has literally gotten to point where she knew was drowning in debt.

I'm not sure how her folks will react to this to be honest. All such a mess.

BlushingRose

paydayproblems wrote: »

Shes early 30's too.

She was at CAB last month, so I think she has literally gotten to point where she knew was drowning in debt.

I'm not sure how her folks will react to this to be honest. All such a mess.

Her family don't need to know anything about it.

antonia1

Hiya, just wanted to say that bankruptcy might not be the only option for her - have you / she ever heard of a Debt Management Plan (DMP) or a Debt Relief Order (DRO)? Seeing CAB is a good first start, and she (not you) should contact one of the debt charities (not companies) for help. The two frequently recommended on here are CCCS and Payplan.

However, her first port of call should be to open a new bank account with a new bank and get her salary paid in to that, so that the payday loan companies can't just take all of her wages.

euronorris

TTC40 wrote: »

Others have commented on she must have something to show for £3k. We all know that money spent doesn't always mean an asset at the end. Also she may have only borrowed a much lesser amount & the rolling interest has escalated the debt quickly.

She's lucky to have a supportive & practical boyfriend.

Good luck with the discussion. Likely to be some tears but hopefully it will be a weight off her mind knowing there is a path to clear the debt.

I agree.

Plus, I do wonder if she used the money to cover a bill that the OP was unable to when on JSA, or to get him a treat to cheer him up etc etc. Not saying it's right, but sometimes people do the wrong thing, for the right reasons.

I think you'd be wise to bring it up by saying they called the house asking for you, and you are wondering why because you didn't know she had any payday loans. Then 'Have you?', quickly followed by 'Because if you do, I want to help & support you in getting them cleared asap.'. Hopefully she'll open up then, and when she does you can let her know that you were disappointed she didn't discuss this with you, and why was that? Does she have a plan in place to tackle them? Does she think her folks can help in the short term? etc etc

Good luck!

paydayproblems

People make all kinds of assumptions as soon as you say your on JSA.

By the time I went onto jobseekers she was already financially a mess, In practical terms I was better off.

Secondly, Whilst I was a student I was on student loans and working, with the tax breaks etc you get and the fact I didnt drink most of my student loan, I was actually pretty comfortable so there was no need for her to "treat me".

If anything, that was me, not her.

I've only been on JSA for 6 months for the first time in my life, its not a situation I intend to remain in long term.

euronorris

antonia1 wrote: »

Hiya, just wanted to say that bankruptcy might not be the only option for her - have you / she ever heard of a Debt Management Plan (DMP) or a Debt Relief Order (DRO)? Seeing CAB is a good first start, and she (not you) should contact one of the debt charities (not companies) for help. The two frequently recommended on here are CCCS and Payplan.

However, her first port of call should be to open a new bank account with a new bank and get her salary paid in to that, so that the payday loan companies can't just take all of her wages.

I was going to say the same thing. I'm not sure that her only options are get parents to help, or go bankrupt. A DMP is definitely an option also.

But.......it depends on her credit rating. If it's already shot, then she's got nothing to lose. But, if it's good, then it would be in her and the OP's best interests to hold onto this. Especially if they want to buy a house together.

And OP - I see that since my last post (I hadn't read the whole thread at that point), you have explained that you are not living together, and she didn't give you any money etc. I still think the other questions need to be asked though, as to why she hid it.

Good luck.