Student Debt Advice for a friend
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il638
Posts: 48 Forumite
hi everyone
was out with a friend last night and he told me about a problem with debt he is having. i dont have enough money to help him out
but was wondering what you guys would think is the best way out for him?
he has a 3k overdraft limit of which he is just over 2k on..
and 2 credit cards which are £40 or so off the limit , and a store card too..
he reckons the store card can be paid off next month, but he's not earning enough to clear the credit cards or overdraft.
he is just managing to pay £5 or £10 more than the minimum payments which is nothing with the interest constantly being added on top
whats the best way out for him?
i had no idea he was like this, he never mentioned anything until now.
he wont recieve any student loans etc. till the start of his second year in september.
is there a private or commercial loan he can get from a bank? that acccept student appplicants? for around 5k to pay back over 36 months? that way he can clear them cards and most his overdraft and still make the £280 or so monthly payments.
i reckon it'll be easier for him to manage with debt at once source and also help him keep on track.
am i right? aside from that, is there a better way for him? bearing in mind if he drags it on and waits till uni starts for that loan, he'll be back in same position as he'll struggle to live next year by using up his loan.
he really is a spaz, dont know how he could have got himself in this mess.
thanks for any advice
was out with a friend last night and he told me about a problem with debt he is having. i dont have enough money to help him out
but was wondering what you guys would think is the best way out for him?
he has a 3k overdraft limit of which he is just over 2k on..
and 2 credit cards which are £40 or so off the limit , and a store card too..
he reckons the store card can be paid off next month, but he's not earning enough to clear the credit cards or overdraft.
he is just managing to pay £5 or £10 more than the minimum payments which is nothing with the interest constantly being added on top
whats the best way out for him?
i had no idea he was like this, he never mentioned anything until now.
he wont recieve any student loans etc. till the start of his second year in september.
is there a private or commercial loan he can get from a bank? that acccept student appplicants? for around 5k to pay back over 36 months? that way he can clear them cards and most his overdraft and still make the £280 or so monthly payments.
i reckon it'll be easier for him to manage with debt at once source and also help him keep on track.
am i right? aside from that, is there a better way for him? bearing in mind if he drags it on and waits till uni starts for that loan, he'll be back in same position as he'll struggle to live next year by using up his loan.
he really is a spaz, dont know how he could have got himself in this mess.
thanks for any advice
0
Comments
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p.s. he has cancelled most things and really cut down on his spending soo all he is paying for now is the necessary stuff , but part time wage isnt helping him fix the problem quick..0
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He won't get a loan from a bank I'll tell you that much.
Basic question... does he have a job?0 -
Consolidating debt to try to get out of trouble is the very worst thing to do - ask on the DFW and Bankruptcy Boards how many people have dug themselves in deep by this route.
Encourage him to get a job or else these debts are just going to spiral.0 -
I assume that the overdraft is with a student account then. He should use the rest of the overdraft to pay of the store cards and the credit cards as the overdraft as long as he doesn't go over the limit is free. But seriously he should pay off the one with the highest intrest rate first. He should also cut up the store card and the credit cards so that he cannot live beyond his means. Also he should get a job at home and at uni as then he has regular income in order to pay off the debts0
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p.s. he has cancelled most things and really cut down on his spending soo all he is paying for now is the necessary stuff , but part time wage isnt helping him fix the problem quick..
Ask him to fill in one of these, and post it on the DFW board. I have never seen a budget without wiggle room!
http://www.makesenseofcards.com/soacalc.html
Can he work any more hours over the summer months? Has he cut up his cards yet?Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0 -
ok i'll pass that on to him, yeah the overdraft is with a student account.
makes sense, i'll have to see his proper figures first before i can help advice him0 -
hi all
we managed to sort him out, ive lent him 1k and so has another mate.
just means us 2 will be using our overdraft over the next few months wich shouldnt affect us.
his parents have also given him some money..
he's got out of this one, luckily.
Thanks for the advice0 -
Good luck getting the money back, you won't see it for years.0
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nah it'll be ok, his parents have promised to pay us while he clears his overdraft.. just not got the money as yet0
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