Hypothetical q about debt repayment whilst unemployed

aliasojo

If someone is unemployed and it's clear their family unit is struggling because of debt repayments, what would the situation be if a family member wanted to clear the debt for them?

Would this cause problems? Assume for the purposes of the question the family member would pay the debt direct from their bank account in one go to clear it, rather than giving the person x amount per month to pay the monthly payments.

nannytone_2

there wouls be no problem.

rgw ibky issue that could arise, is if the money was paid to the benefit claimant, rather that direct to the creditor.

if the benefits were means tested, and the amount 'given' took the person above the savings limit.

in the situation you describe, this wouldnt be an issue

aliasojo

Thank you for clarifying.

rogerblack

It's perhaps also worth offering less than the total price in a full and final settlement.
If the debt has been sold to a debt collection firm, they may have paid a substantially lower price for it.
So, for a 10K debt, they may be quite willing to accept 5K.