large debt

2

Comments

  • theoretica
    theoretica Posts: 12,294 Forumite
    First Post Name Dropper Photogenic First Anniversary
    I agree with other posters about holding off on borrowing from relatives. He is in enough debt that it will be a long time, if ever, before the lenders get their money back - better that the banks are left without than relatives. Better to keep that kind offer in reserve for a future need (perhaps in future the relative might help with something like a flat deposit which he will get back eventually, but ties up money).
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • LoulaBelle
    LoulaBelle Posts: 134 Forumite
    First Post First Anniversary Combo Breaker
    what were the loans for ? furniture? car etc - can he sell some stuff? are they joint loans ? or personal loan only ?
  • natlie
    natlie Posts: 1,687 Forumite
    Photogenic Name Dropper First Anniversary Combo Breaker
    Hi,

    Can he get a second job? bar work whatever, to help with income.

    I would speak to Step Change too but in the first instance I would want to see his statements to see what he has been buying, as if it is something more serious like a gambling habit he hasn't told you about then you wont sort this by helping with repayments as he will be able to access more cards with worse providers (pay day loans etc) so long as payments are being made.

    You could also seek help from CAP or Citizens advice

    Nat
    DMP: £30,668 £3,364.02 DFD July 2024
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Are your figures correct? That's £61,429 worth of debt. How old is your son? How on earth has it got so bad?
  • Suseka97
    Suseka97 Posts: 1,562 Forumite
    First Anniversary First Post Name Dropper
    It's really great you are looking to help him find a solution to his debt problems and it can't be easy for you either.

    I suggest taking the advice to contact one of the debt charities - that is a significant debt problem and so you really do need professional help here. StepChange and NEDCAB have an online tool that you can use if you don't want to speak with them just yet - at least you'd get a sense of the options available to him.

    I wouldn't make any plans to use the £7k on offer - it really won't make much of a dent, although I realise the OD charges aren't helping. Just pause and look at the options before proceeding.

    Good luck :)
  • onwards&upwards
    onwards&upwards Posts: 3,423 Forumite
    First Anniversary Name Dropper First Post
    I have to agree with all the others that he shouldn’t take the loan from the relative.

    It’s very generous of them but he’s in so much debt that it won’t make much of a dent, and if he has to bankrupt the relative will lose their money, he won’t be allowed to repay them.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,585 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
    I think that the question has to be asked how did he get that level of debt on a relatively low salary. If his job is seasonal then presumably he is going to have trouble meeting those commitments when the work dries up? If this is the case then the best course might be to declare bankruptcy. If he does this the relative will lose all the money. If he needs or wants to avoid that then I think the overdraft is possibly the best place to start with repaying the debt or reducing the zopa loan which is expensive.

    Whichever your son needs to learn money management to avoid building up that sort of debt again. Does he have any assets he could sell like a car?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Bankruptcy?
  • heartbreak_star
    heartbreak_star Posts: 8,286 Forumite
    First Anniversary First Post Combo Breaker Rampant Recycler
    I rarely advocate bankruptcy, but in this situation it seems like a sensible idea. Go to one of the specialist debt charities.

    Good luck to you and your son!

    HBS x
    "I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."

    "It's easy to know what you're against, quite another to know what you're for."

    #Bremainer
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    heartbreak_star wrote: »
    I rarely advocate bankruptcy, but in this situation it seems like a sensible idea. Go to one of the specialist debt charities.

    Good luck to you and your son!

    HBS x


    The debt is crushing compared to your son's income so I think the only way out is bankruptcy.



    Also, please be careful about sorting this mess out yourself. Not only are you providing a nice scapegoat for your son to come to the realization that debt gets sorted by parents when things go pear-shaped, you really don't want to be anywhere near these creditors when the bailiffs come.


    Can your son explain how things got so bad? Can you be sure if debt is wiped out that your son won't do the very same again?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards