large debt

Clouds88

I think bankruptcy will be the best route and actually, it will stop him from getting credit again for at least 4 years after which then should help him sort his life out enough to not get in the situation again.

Have a chat with a debt charity with him also, it isn’t as scary as you think. I am currently bankrupt for my own personal reasons. I had one chat with the OR to discuss my situation and that it is. I’m being discharged in May it has been nothing scary at all but given me a fresh start.

shteca

I started this year in a similar situation. I had a £20,000 car, 15,000 loan from Ikano, £15,000 Sainsbury’s Loan, £7,500 overdraft with NatWest, finance on a fridge and plenty of other overheads.
The main turning point for me was the attitude to it.
I am independent and going through it all alone. I took the decision NEVER AGAIN. As my life coach Dave Ramsey says, I was sick and tired of being sick and tired.
I suggest he really needs to come to turns with the situation and make that choice. It needs to be him getting on the Forum and sharing his situation. It’s amazing that you are getting involved and I would do the same in your situation but it’s his choice.
With regards to the loan, you can’t borrow your way out of debt. He needs to stop borrowing money the same way I did. NEVER AGAIN means never. Not from family or banks. It’s 100% in the attitude. He needs to treat this as the most important thing in his life. Nothing else matters until he is out of debt. Every day needs to be budgeted and accounted for. Not one penny gets spent unless it needs to in the goal of getting out of debt.
Only with this attitude will he stand a chance and unfortunately you can’t teach that to someone it has to come from him.
Get him on the forum and filling out a SOA

System

shteca wrote: »

As my life coach Dave Ramsey says, I was sick and tired of being sick and tired.

How are you? Better than I deserve...

System

I motion bankruptcy in this case.

Also there isn't any mention of any credit card debt there. It would be VERY rare to have that much debt across loans and overdrafts and not have any credit cards into the mix. Is he being completely truthful with you? I would ask about credit cards.

shteca

andydownes123 wrote: »

How are you? Better than I deserve...

We should count our blessing that there isn’t the student loan crisis here like in the US. This amount of debt to salary ratio would be “normal” in the US with a student loan

Bokkie10

Clouds88 wrote: »

I think bankruptcy will be the best route and actually, it will stop him from getting credit again for at least 4 years after which then should help him sort his life out enough to not get in the situation again.

Have a chat with a debt charity with him also, it isn’t as scary as you think. I am currently bankrupt for my own personal reasons. I had one chat with the OR to discuss my situation and that it is. I’m being discharged in May it has been nothing scary at all but given me a fresh start.

Did you have a mortgage at the time of bankruptcy? Did you have to sell your home?

overlander

Don't waste the 7K it will be swallowed up and nothing will change. I assume he is young and does not own property ? If this is the case bancruptcy or an IVA is the way to go, Forget trying to pay that amount of debt off !

annimouse

thanks all. he mid twentys, doesnt have a mortgage. none of the debt is on a credit card and only his name on the loans. he went through a bit of a personal crisis last year and i can only think that tried to spend his way out of it. hardly drinks and doesnt do drugs. he works hard and his enployers praise his work, hes never been out of work from leaving school.
he knows what a mess hes in and i really really hope he has learnt his lesson.
Bankruptcy is a scary prospect and not one that weve looked into yet.
we will get specialist advice