Can anyone help a mate? Financially struggling with his £4,000 Credit Union Loan?

joe565

Hello

Can anyone give any advice for a mate. He's in his 50's, is working 4 days a week and gets £813 a month (take home pay)

He's a loan with Credit Union approx 4 years and struggling to pay it. Balance now is £4,000. He doesn't own his property and converted a garage at his brother's house into a little flat for him. The brother owns the property. Although, he pay's the rates of a few hundred every year as the rates are in my mates name.

There's no oil heating in the garage/flat and he finds it difficult to heat using electric heaters, hence an expensive electric bill.

Financially he's struggling. The only asset he has is his car worth about £500 and he's to tax and insure it etc. He's really worried about this loan now at £4,000 from the Credit Union. The loan started approx 4 years ago but this last year he got payments reduced to £100 per month as he couldn't pay the higher amounts.

The load was for a Van him and the brother used and the Van is registered in the brother's name and he still uses it but the brother can't afford to pay towards it. The loan from the Credit Union is in my mates name and the Van is only worth about £1,000 now.

Not sure if anyone can offer any advice as he'd appreciate it.

Cheers

Joe

ashp_2

Can he not get a couple more days of work a week? I don't really see another option other than reducing the payments further but this just drags out the repayment term even more.

Arleen

It seems like they are intimately linked financially, as I imagine it's the same brother's garage he lives in? If that is the case then maybe they should sit down together and write a join SOA (http://www.stoozing.com/calculator/soa.php) over at the Debt Free wannabe board, so people can help them out. As the only realistic solution is to either make cuts or to manage the money better somehow.

joe565

ashp wrote: »

Can he not get a couple more days of work a week? I don't really see another option other than reducing the payments further but this just drags out the repayment term even more.

Has asked and no more days in workplace and yes maybe reduce the payments

joe565

Arleen wrote: »

It seems like they are intimately linked financially, as I imagine it's the same brother's garage he lives in? If that is the case then maybe they should sit down together and write a join SOA (http://www.stoozing.com/calculator/soa.php) over at the Debt Free wannabe board, so people can help them out. As the only realistic solution is to either make cuts or to manage the money better somehow.

Yes it's same brother, my mate converted brother's garage into flat. Thanks for the link.

I know nothing about tax credits but thinking would he be entitled to any working tax credits?

Bogalot

joe565 wrote: »

Has asked and no more days in workplace and yes maybe reduce the payments

Then he needs to apply for part time work elsewhere.