Serious debt problem after payday loans given to 17 yr old

13claire

Before he met me my boyfriend was going through a tough time and took out multiple payday and logbook loans.

for the past 2 years he's been trying to pay them off but he's been struggling with most months the repayments taking almost all his monthly incomes.
The past 3 months he's been signed off work due to depression and also a stomach illness that is yet undiagnosed and he's currently going through tests. This now means he can't pay back his monthly repayments

Hes stuck his head in the sand a bit its just all to much for him.
I think the best way would be to consolidate the money and perhaps take out another more sensible loan or credit card with 0% for a year or something so he can pay back all these loans that are charging him £80 interest a month a least to make it more manageable.
As you can imagine his credit score is awful so is anyone ben going to give him anymore credit or is he just stuck now?

Thanks

marliepanda

Not sure whether him being 17 will make a difference, as I imagine they've ended up being lots of little loans, and he must have lied to get them hmm.

Anyway there's zero to titchy chance he'll get anything 0% or even low teens. With his credit file he will only get very high APRs, so may be best to discuss his options with his creditors or enter a debt management plan, depending on the amount.

pmd123

If his credit rating is already shot (likely to be with these payday loans on there) there is little to lose by him defaulting on them (or making £1 token payments) and then agreeing a repayment plan with then.

Suggest a call to step change in the first instance would give some useful advice, and then try to get the interest frozen on the loans.

Taking out credit to pay off other credit is rarely the answer, and will just lead to problems down the road, take the hit now and rebuild.