Friends Debt Of 16k-Best Options?

Penny-Pincher!!

Hi Guys!

My friend visited me last night with a serious problem. I just assumed they were OK as they are always buying stuff and having luxury holidays etc.

Anyway, I got told last night that neither of them have been working for 6 months and are claiming benefits. My friend has quite severe depression by the sound of it-she lost a baby last year and can only assume this has affected her majorly. They also have a disabled child.

They have a couple of small loans but the most serious debt is one to HSBC on a Credit Card for around 16k:eek: :eek: :eek: :eek: :eek: ....they have struggled to pay the minumum payments of £315 each month, but they now just cant afford it.

I have suggested them contact the creditor and explaining situation, but they are scared as they know they shouldnt have been spending it.

Would it be best to send a letter? If so, is there a template? They can afford about £50pm and thats all. Do you think this will cause loads of problems? She doesnt want people calling the house the whole time etc.

Thanks in advance.

PP
xx

Broken_hearted

Its best for them to get outside help from one of the debt charities. Trying to do a self run DMP at the moment would be a lot of stress having payplan or CCCs help would make it less scary.
I'm sure you just listening and being a friend helped a lot.

MrsTinks

Definitely contact CCCS or payplan.
Regardless unless they find some jobs and manage the repayments then there WILL be people calling the house, I'm sorry there is no way round this
You say they are both out of work? I can understand someone with depression being out of work, but what about the partner? Are there no tesco shelves that need stacking in their areas?
It might also be worth suggesting a visit to the GP about the depression. They should be able to refer them to a councillor so they can start addressing the depression.
And they have GOT to stop the spending! Soon it'll happen all by it self because they won't be able to get any credit and money will have dried up... But starting to address it now will make it much easier.
Maybe get them copies of the money diet and the OS book will be of some help to them?

Penny-Pincher!!

Thanks for the replies.

By the sound of it, she is unable to be left by herself with the child. They dont have anyone to help out...family etc. She has beem referred to the mental health team and is on medication for depression and panic attacks.

I advised about Payplan etc, but they asked if they could try by themselves with a letter stating facts and figures. Would this be allowable? I have seen a template for creditors but cant remember where?

I think ATM, they just havent come to terms with the extent of their problems, but I really cant do much more. They must still be spending as they bought a box of posh chocs for me. I also gave them my copy of Martins Book. They also have a morgage:eek: :eek: :eek:

God...what a mess!!

PP
xx