Partner in debt - advice needed!

PenguinsMadeMeDoIt

Hi there ... after lurking for quite a long time (and picking up a lot of useful tips along the way!) I've signed up, rather shallowly because I need some advice!

I was in a wee bit of debt a while ago but after getting some good advice (from here) and giving myself a bit of a mental slap, I'm in great shape now.

Problem is, I moved in with my boyfriend recently - always been aware that he carries hefty debts, we've started trying to look at things together and make the situation better. He has, in total, almost £40,000 in debt. Of this a fair amount (unsure of exact figure) is on credit card.

He has a pretty well-paid job, but it's still close to the wire every single month, and on more than one occasion I've had to bail him out. He has a loan (£360+ a month) which ends in March 09, and when that's gone things will be healthier.

But there are also 2 Credit Cards at £7,000+ and £4,000+, both carrying something in the region of 24.8% interest! Consequently he's paying off solely interest, and just can't afford to pay more than the minimum amount.

We've spoken to both of these CC firms (one MBNA) and explained that he's on the brink of applying for an IVA - this is true, some months with Overtime etc things are comfortable, some it's impossible - and if they could halt the interest, or lower it rather drastically for a while then he could pay it off and avoid such measures. They're having none of it.

Any ideas on how we can get them to listen? In my mind this seems like quite a reasonable proposal, we have spreadsheets showing outgoings and accounts, so they can see this isn't just a big sob story!

THANK YOU in advance for any advice!

CLAPTON

Its unlikely that they will agree to stopping the interest or even reducing the interest rate in the circumstances you describe.

Interest rates can be negotiated down with some success but usually from a position of strength and not weakness i.e. threatening to take your business elsewhere because you have been offered a better deal there.

I would suggest you get him to post up his SOA here showing income, spending and debt details here and see what suggestion can be made to help him.

Do any of his debts include PPI, if so he may consider cancelling these, does he have things he can sell ?

OberonSH

Is his finances still in a position to apply for a 0% balance transfer card? At least then he'll be able to throw 100% of the amount at the debt. I don;t reckon that whilst they're still getting their money, the banks will do anything to help, they'll only take a cut in interest etc if it's that or get no money.

liz105

Any reason why you/partner are considering an IVA instead of a DMP?? Failing an IVA has much greater consequences (bankruptcy) than failing a DMP.