Crippling Unsecured Bank Loan

eliza_3

I am new to this so please bear with me. My daughter has just told us that she has an unsecured bank loan of £15,000 and can't meet the repayments. She earns £6.50 a hour as a carer has rent of £400 and loan repayment of £400 and has asked us to help out. We are pensioners and it would severly affect our retirement budget. We aren't sleeping with the worry and would be so very grateful for any advice you folk can offer. She won't go to the CAB or the other official sources Martin has suggested; what do we do!!!Thanks for any advice.

Ex-Spendaholic

£400 seems to be a big payment on a £15K loan. She must have it over a short term. Is extending the term an option? Not ideal but if it maybe lowers her payments.

Anyway I've nothing very useful to say but I'm sure that someone helpful will be along in a minute.

Good luck in helping your daughter.

exil

You will have to post daughter's income and outgoings. Why won't she go to the CAB, she'll get better advice there.

beanielou

Why is your daughter unwilling to go to CAB ect?
Can you post a Statment of affairs for your daughter?
Could she get a wee part time job to help out meantime?
Sell bits n bobs on ebay?

LookingAhead

Hi eliza.

I'm sorry to read you are not sleeping with worry, it's unfortunate that it is affecting you like this. Does your daughter realise this?

If she doesn't know, I think you should tell her.

There is good free advice out there which can ease the burden and take the pressure off you - after all, sorry to sound harsh but it isn't actually your responsibility - so if your daughter realises how much she is upsetting you perhaps she will seek that advice.

Ex spendaholic makes a good point though, that the £400 is a BIG repayment so ask her how long she has taken this loan out for.

How long has she got left on it by the way?

Skint_Entrepreneur

If she isn't going to get professional help to sort her self out (she's a big girl now) why should you? Not that you can it sounds. Tell her to grow up and deal with it.

CLAPTON

It impossible to give good advice without the full financial details..she needs to post a SOA

An SOA Statement of Affairs

a. list of income and a total
b. a detailed list of spending (include mortgage and secured debt but exclude unsecured debt)
c. a total of spending as above
d. now you can see how much you have to pay debt monthly by forming income minus spending
e. a list of unsecured debts
i.e. debt amount, minimum monthly debt repayment, APR for CCs
and amount outstanding, monthly payment and number left to pay for loans
f. a total of unsecured debt and of monthly unsecured debt repayment
also say if you rent or buying , if so how much is the house worth and how much the mortgage, also your general situation: partner, children, working etc.

or read
http://forums.moneysavingexpert.com/showthread.html?t=107280

eliza_3

Thank you all so much - its all good advice and when she will accept my calls I will show her what you have suggested: just as an after thought although its drastic ..how can you go bankrupt? she is working so is that just an easy way of escaping your responsibilities! I really appreciate you cyber-people

GirlRacer_2

Hi Eliza, Bankruptcy isn't something to go into lightly, I agree with the above posts, there must be some way around this. Is it the fact that going to CAB means that your daughter is accepting she needs help or is it the shame attached with having money problems?

We are all in the same boat and the sooner she faces up to it, the sooner SHE not YOU can deal with it. Don't mean to sound harsh.