Helping a Relative with Debt - Advice Please

cockneycomputer

First time poster. My cousin had a serious gambling problem (he has not bet for over 24 months) and accrued alot of debt when gambling. He is doing everything to beat his addiction and has done excellent for the past 24 months. However, his debts from when gambling are getting on top of him

I have looked at all his debts and all of them relate to gambling and are all over 24 months old. He owes alot (and I mean alot). In a way he is lucky that over 70% is to family and friends. However, 30% is to four banks. All family members and friends (all whilst very annoyed to say the least) are willing to write of most the debt. Like I said he is very lucky. This just leave the four banks. I have written to them - offering each as full and final settlement (which I will pay out my own pocket). This was a equal percentage to all of them based on the amount he owes. Treating all of them fairly. Three of the banks have offered to settle. Before, I pay them I want to make sure I can legally do this. If three say yes and one says no.


Thanks in advance

kerinat

open a new bank account with no overdraft available on it with another bank and have only incoming money put in it. Look at www.cccs.co.uk and set up a debt management plan this is all free. If there are any bank loans, credit cards, hp, store cards etc. Have a look at this website for reclaiming thousands you may be able to claim back ppi.
GOOD LUCK

cockneycomputer

Thanks for that Kerinat - but it did not really answer the question

dancingfairy

Indeed you can. Each bank will mostly act individually, they may slightly swayed if he has had agreements accepted with the others but it will be mainlydown to their own criteria.
You should get any offer(s) in writing to them and make sure that you receive confirmation in writing of the exact terms of the offer - ie they must promise that they will consider the debt settled, that they will not sell/pass on the debt to a third party to chase etc etc.
I believe National Debtline has some very useful advice on full and final settlements on one of their factsheets.
People generally start with a low percentage of the debt and work up - ie depending on the size/length of time since it was paid/prospect for repayment etc - normally I think people start at 30% (obviously it depends on whether the debt is with the orignal creditor or has been sold to a debt collector for peanuts).
I'd also get him to make it clear that the funds are being given by a third party as a gesture of goodwill (ie that he himself does not have these funds- otherwise they might start to wonder where all the money has come from and come chasing him).
Good Luck to him and you.
df