Need help with loan company

Pixie5740

nannoo1955 wrote: »

The choice was the loan with Santander, or with me!! If they prove to be good with their repayments on the loan, it would be good to chat with Santander in a few months and transfer all their banking to them to get their advantages, e.g. cashback on utilities etc.

There was always the option to stop borrowing money, start budgeting properly and snowball their debts but it's done now. I just hope they are the exception to the rule when it comes to debt consolidation.

Apples2

You should be celebrating dodging becoming a guarantor.

Now sit back and observe what they do, holiday, extravagant christmas etc and you can reflect on the lucky escape.

nannoo1955

Thank you - some of you have been quite helpful and, I'm afraid, some of you quite smug. Were you not very young once, and a little bit rash? They have just moved in together and are really trying now to get their "house" in order, move forward and grow up. I was just asking advice to help them do this.

27col

nannoo1955 wrote: »

Thank you - some of you have been quite helpful and, I'm afraid, some of you quite smug. Were you not very young once, and a little bit rash? They have just moved in together and are really trying now to get their "house" in order, move forward and grow up. I was just asking advice to help them do this.

What other people were once has absolutely nothing to do with their replies to your question. They were in no way being smug. Most were just writing down their experience of these matters and suggesting a route that you and your nephew/gf might take.
I'm sure that we would all be pleased for you to come on here in 6 months time and prove us all wrong.

Pixie5740

nannoo1955 wrote: »

Thank you - some of you have been quite helpful and, I'm afraid, some of you quite smug. Were you not very young once, and a little bit rash? They have just moved in together and are really trying now to get their "house" in order, move forward and grow up. I was just asking advice to help them do this.

Yes I was young once, in fact I am still relatively young. I had debts, I consolidated, then consolidated again, and again so I speak from personal experience when I say that debt consolidation doesn't work. Borrowing more money to get out of debt is like a fat person eating cake to lose weight. Proper budgeting and snowballing debt does work though.

However you seem determined that taking more debt was the answer and so that's what they've done.

nannoo1955

27col wrote: »

I'm sure that we would all be pleased for you to come on here in 6 months time and prove us all wrong.

I really do appreciate the helpful replies, but proving whether you are right or wrong is surely not helpful. I was after advice for the future, not admonishment for their past misdemeanors.:(

Nasqueron

nannoo1955 wrote: »

I really do appreciate the helpful replies, but proving whether you are right or wrong is surely not helpful. I was after advice for the future, not admonishment for their past misdemeanors.:(

The problem is that cyclical behaviour of running up debt, borrowing to pay off that first debt, running up more debt (as the payments are reduced so they think they have more money instead of paying it off) is demonstrated over and over on these forums, including on the bankruptcy board. In the past companies like Ocean finance would talk about consolidation loans on TV showing this long suffering family finally getting the lightbulb moment, then showing holidays and new cars that the family can now "afford" even though they're just building up more debt.

I hope this couple pay off their debts and then use all that money they were paying to clear the Santander loan as soon as possible (and then bank any extra if overpayment is not allowed to give them a cushion should something happen).

Past experience of many people on the boards will instead see the couple being diligent for a little while, then Christmas comes and seeing only 1 debt, out will come the CC and expensive gifts / holidays etc will be booked and in a while you'll be back on here talking about being a guarantor for a 15k or 20k debt as they won't have learned. I hope to be proved wrong - good luck with them

nannoo1955

Yes, we will see. I shall be doing their accounts for them for a few months, so hopefully they can learn some stuff!!!!

nannoo1955

Yes, we will see. I shall be doing their accounts for them for a few months, so hopefully they can learn some stuff!!!!

nannoo1955

Yes, we will see. I shall be doing their accounts for them for a few months, so hopefully they can learn some stuff!!!!