Drowning in (son's) debt - getting desperate

elsien

devondiver said:

Question: RAS said:

It takes 3-6 months typically for debts to default. However affordability is everything so some creditors will offer lots more options before they default debt. 

So during that 3 - 6month period is interest still getting piled on? And if the creditor (Halifax) might be a bit helpful it's very tempting to talk to them (rather than complete radio silence - as suggested above). What is to lose by trying - as now suggested by Stepchange? (Serious question.)

Son has just set up Monzo account but nothing will go in until payday - 3 weeks away. So, he can either let Halifax overdraft max out again as DDs etc. go out, then pull the rug just before payday, or I can bung some 0% money transfer into his Monzo account for him to live on until then. Decisions, decisions.

I would strongly suggest not bunging him any more money. Firm line in the sand, this is how things are from now on. 
Avoids mixed messages further down the line and he does now need to start to manage without that support. 

Rob5342

I agree, this is it now. If you bung him a bit now then it will turn into another bit later and you'll just end uo where you are now. 

devondiver

Yes, thanks, advice noted - but what about the other considerations? 

RAS

Just bear in mind that three or four years down the line, he may get offers of reduced settlement fees so that extra interest will get lost.

backinbusiness

No more money - look how it's panned out thus far . . .

Good luck! BiB x 

Rob5342

devondiver said:

Yes, thanks, advice noted - but what about the other considerations? 

If he talks to Halifax and or Stepchange they will want him to start repaying it straight away. That means any spare money he has will be uaed up straight away. He will also get arrangement to pay markers on his credit report which stsy there for 6 years after the debt is repaid.

If he stops paying straight awsy and waits until he defaults then he can put any spare money into an emergency fund. The defaults will drop iff his credit report 6 years after they were applied. He will get extra interest and charges now but the debt will be sold to a debt collector who will accept a reduced settlement offer later on.

Its up to him what he does of course, but the first option makes things much worse for him in the long run. 

RAS

Rob5342 said:

devondiver said:

Yes, thanks, advice noted - but what about the other considerations? 

If he talks to Halifax and or Stepchange they will want him to start repaying it straight away. That means any spare money he has will be uaed up straight away. He will also get arrangement to pay markers on his credit report which stsy there for 6 years after the debt is repaid.

Corrected above. Making arrangement to pay damages his credit record for a lot longer, and cannot damage it for less time. 

stymied

Manually moving the DDs to Monzo sometime after payday makes sense so long as mortgage and council tax won’t bounce.

Just to double check that he’s already asked for his salary to be changed to the new Monzo account?

Rob5342

RAS said:

Rob5342 said:

devondiver said:

Yes, thanks, advice noted - but what about the other considerations? 

If he talks to Halifax and or Stepchange they will want him to start repaying it straight away. That means any spare money he has will be uaed up straight away. He will also get arrangement to pay markers on his credit report which stsy there for 6 years after the debt is repaid.

Corrected above. Making arrangement to pay damages his credit record for a lot longer, and cannot damage it for less time. 

Thanks for pointing out my mistake, i know full well it's s 6 years, I muat have typed that in a hurry. 

RAS

Rob, I know you know, you've posted that info previously. At least is wasn't moths or gears which spellcheck prefers?