Please Help. OH had LBM!!!

Lucy1982_2

Morning Guys.

I saw wondering if you could help me.

I was chatting to my OH on the phone last night and he had his Light Blub Moment :T

Last week he reclaimed his bank charges (from Nat West I think) they have used it to pay off the remaining OD on his account and then used the rest to reduce his loan (he has no defaults on it). Now are they allowed to do this??

Now he doesn't have a problem with the OD, but the loan is proving to be a bit of a problem. He took it out about 3 years ago and thought it was over a 5 year period. But he has been looking at the paperwork and it seems to be over 8 years!!

We have only been together 4 months and he is a bit uncomfortable discussing it all with me (fair enough) but wants me to help him find out if they can use the charges to pay off part of the loan. If they can he is determind to get rid of it as soon as possible (Good thing I feel)

Now we are going to go through everything at the weekend and I am going to explain ways he can cut back and save himself some money. But I was wondering where he stands regarding the loan. Can this be seen as mis-sold? If so who can we go to? I have a feeling he would push this if there is some chance it was.

Secondly he is paid weekly, does anyone have any tips for weekly budgets? It may be a case of writing it all down as I am not sure how much he will discuss with me.

I hope that this makes some sense, if not please feel free to ask questions and I will do my best to answer them. His family know about everything, which is one help. Last night we discussed that fact that we both have debts, but he didn't want to go into figures. I'm guessing he's embarassed about it all... But then aren't we all

Thanks x

CLAPTON

Difficult to give advice without the full facts but
broadly speaking yes the banks can use the money to pay off his debts.

As far as the loan is concerned, you really need to read the loan agreement, as so far its a bit vague. Just because he 'thought ' the loan was five years but its really eight doesn't really amount to anything... what does the paperwork say, why does he think it is over five years, is the matter formally in dispute?

Weekly income... the key is to actaully SAVE money each week so he has the money actually in the bank when the bills come in...
He needs to create a realistic budget which incudes all his normal monthly spending and to work out all his yearly and one off spends (car tax, holidays,clothes,car insurance or whatever he spends) and divide by 12 and add it into the monthly budget and actually save the money so the money is there when needed and so doesn't go into the OD or need a loan.

Suggest he comes on here and posts his SOA and people will be better able to help.

trulymadlydeeply_indebt!

Hi Lucy - Just posted as well on my "bookmarked" diary of yours - fab reading!

Congrats to BF on LBM :beer: If he doesn't want to discuss actual figures then perhaps it may be helpful to show him the forum. He can either do it in private at home, at work, the library - wherever. Or you guys can do it together of an evening (not very romantic, I know, but at least your starting your relationship being very open with each other and with support coming from all directions - each other, parents and other DFWers - your relationship is off to a great start and can only be stronger for it).

Just remember to have fun too - the early days are ones you can never repeat - it's later on that it all gets serious!!!! :rotfl:

Lucy1982_2

I would love to get him to post his SOA, but he doesn't have a computer at home and no access at work. I'll see what I can get out of his at the weekend.

I had a feeling that they could do that. Oh well... He's going to have to do things the hard way...

I'll try and have a look at the small print and see what is says. He is the first to admit that he's not great with financial wording etc.

Thanks for the reply

Little_Pickle

Morning Luc,

well, there's a turn up for the books, eh? Your OH having his LBM? I wish mine would... but then he earns 3x more than me and has no debts so I guess he doesn't need to!

Anyways, I can't give any advice on the bank stuff... you 'll have to wait for another DFW to come along who knows about these things....

What I can help you with is a weekly budget.
Now, a lot of people say to me, 'oh, you are so lucky to get paid weekly!' but I hate it. I have had jobs where I was paid monthly and I felt I had more control then. A big lump sum at the end of the month to play / work with.

Something that your OH might find hard is that aspect. Being paid weekly. In regard to his debts, he might find it hard to one week watch this much leave his account, next week another amount etc, etc... you don't feel like you are getting anywhere and you always feel like you have NOTHING.

So, what I have been doing is this...
Work out a budget.
Pay each debt weekly if possible... for example if he usually pays 100 per month to his credit card, then make weekly payments of 25.00GBP instead. It feels better - trust me!
Withdraw a weekly budget each payday.. and leave the card at home CASH IS QUEEN!!!

I also try not to look at my on-line banking more than twice a week if I can help it.
That way, I have my budget, I spend no more and any spare money in my account ticks up weekly. I usually find that I have a little spare after a few weeks and that goes on my debts too... this week I managed to put 100.00GBP extra on my debts!

Lucy1982_2

Thanks what I was thinking. I know he has just opened a new bank account and I am tempted to suggest he opens another one and transfers his weekly spends in there or has his bills come out. That way he can pay in the needed amount each week.

He just needs to be really honest if he wants me to help him. But as we everything, I can only suggest, it's up to him if he follows it through. But from the way he was talking last night, he know that he has to do something and can't go on like he is.

Tashja

Hi hun

I don't know if this is an option for your OH but while you are looking through the loan paperwork see if he has PPI or some other payment protection on the loan and then see what it covers and if you can get rid of it.

T xx

Lucy1982_2

I will do. I am going to help him as much as I can, but I don't know how much he will let me go through things.

I'm not very well and he does want to add to my problems, but as I tried to explain to him last night that's what I'm here for. We don't live together and he seem to think that means I don't need to know (which is fair enough) but if I am going to help him learn to budget there are things I need to know.

Might take my budget along and see if that helps him... he'll at least see that I trust him with these things.

RAS

Hi

A good idea even if you are monthly, but particularly weekly paid, for the quarterly and annual spends - car things, holidays, possibly utilities, pressie, calculate what is needed, divide by 52 and DD that amount a week into an ISA.

Search Martin's article on ISAs for the ones that offer good rates for regular savings and allow at least one debit a month. He may only get little bit of interest but it is better than a kick in the teeth. Also this is a good place to stash small extra amounts that he may need to pay out but which might be available to pay off his debts if things turn out well.

smudgemanc26

Hi Lucy

I know what its like to have a OH who gets paid weekly and i always thought id love to get paid like that especially when im skint in the week you only have until friday to wait but i know now that if i would have got paid weekly non of my monthly bills would be paid as im hopeless at saving money.

My OH doesnt save either so im trying to get him to put money aside now instead of living week by week and its even more crucial now as he has got his motorbike test soon and will need to budget for things like petrol, road tax insurance etc.

I have been looking on the savings board and have found out one of the best ISA accounts that is paying the best interest is the nsandi one also you can debit from this account so your money isnt tied in for a period of time.

If i come up with any ideas or have any luck in converting him to a saver i'll let you know. Jen x