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    • Rosie 64
    • By Rosie 64 13th Apr 19, 7:14 AM
    • 1Posts
    • 0Thanks
    Rosie 64
    Advice please
    • #1
    • 13th Apr 19, 7:14 AM
    Advice please 13th Apr 19 at 7:14 AM
    Son has taken out short term balance credit cards (Aqua)and has other debts he wants to get a loan to pay them all off but i can not guarantor a loan as going through mortgage application. All the loans are coming up as 49 per cent or ridiculous 199 per cent. Advised him to go to step change to get a DMP but they have said because he can still make the minimum payments its not suitable for him and to get a loan to consolidate. Is there any that no charge the earth and will have no guarantor, He is only 23. He has taken these out this with out my knowledge as he lives away from home.

    thanks
Page 1
    • Edi81
    • By Edi81 13th Apr 19, 7:19 AM
    • 666 Posts
    • 604 Thanks
    Edi81
    • #2
    • 13th Apr 19, 7:19 AM
    • #2
    • 13th Apr 19, 7:19 AM
    He’s 23 not living with parents so it’s his issue not yours.

    I wouldn’t help him out - he needs to learn that you can’t have it all.

    He should get himself on here if he wants to sort this out.
    • hollydays
    • By hollydays 13th Apr 19, 7:24 AM
    • 17,104 Posts
    • 13,290 Thanks
    hollydays
    • #3
    • 13th Apr 19, 7:24 AM
    • #3
    • 13th Apr 19, 7:24 AM
    well that was helpful!
    • Sncjw
    • By Sncjw 13th Apr 19, 7:31 AM
    • 2,077 Posts
    • 1,252 Thanks
    Sncjw
    • #4
    • 13th Apr 19, 7:31 AM
    • #4
    • 13th Apr 19, 7:31 AM
    Don’t get a consolidation loan as that is doubling his debt. The lender will assess him on double the debt for affordability. Also a recent loan application which would be double the debt would not look good on mortgage. How will he afford to pay that off and his mortgage if he struggling now without a mortgage
    • Moneyineptitude
    • By Moneyineptitude 13th Apr 19, 7:36 AM
    • 23,457 Posts
    • 12,851 Thanks
    Moneyineptitude
    • #5
    • 13th Apr 19, 7:36 AM
    • #5
    • 13th Apr 19, 7:36 AM
    a recent loan application which would be double the debt would not look good on mortgage.
    Originally posted by Sncjw
    It's the OP who has applied for a mortgage, not her son who has simply run up a large credit card bill..
    • zx81
    • By zx81 13th Apr 19, 7:38 AM
    • 21,673 Posts
    • 23,567 Thanks
    zx81
    • #6
    • 13th Apr 19, 7:38 AM
    • #6
    • 13th Apr 19, 7:38 AM
    Send him to the DFW boards.

    He'll need to pay the debts off the old fashioned way, but they'll offer a lot of support.
    • Tarambor
    • By Tarambor 13th Apr 19, 12:12 PM
    • 4,844 Posts
    • 3,786 Thanks
    Tarambor
    • #7
    • 13th Apr 19, 12:12 PM
    • #7
    • 13th Apr 19, 12:12 PM
    well that was helpful!
    Originally posted by hollydays
    It was, it is precisely what needs to be done. He needs to learn the ramifications of borrowing from his future self before he gets to an age where it'll cause real issues so a bit of pain of having very little spare money and not being able to do what he wants may focus the mind.
    • hollydays
    • By hollydays 13th Apr 19, 5:13 PM
    • 17,104 Posts
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    hollydays
    • #8
    • 13th Apr 19, 5:13 PM
    • #8
    • 13th Apr 19, 5:13 PM
    It was, it is precisely what needs to be done. He needs to learn the ramifications of borrowing from his future self before he gets to an age where it'll cause real issues so a bit of pain of having very little spare money and not being able to do what he wants may focus the mind.
    Originally posted by Tarambor
    That's your opinion.
    You can tell all that from a third party's post?
    • Edi81
    • By Edi81 13th Apr 19, 7:55 PM
    • 666 Posts
    • 604 Thanks
    Edi81
    • #9
    • 13th Apr 19, 7:55 PM
    • #9
    • 13th Apr 19, 7:55 PM
    Well what do you suggest?
    The OP nails her son out?
    We’ve all read enough posts similar to this. Sometimes tough love is what you need!
    • Socajam
    • By Socajam 13th Apr 19, 8:02 PM
    • 152 Posts
    • 157 Thanks
    Socajam
    It was, it is precisely what needs to be done. He needs to learn the ramifications of borrowing from his future self before he gets to an age where it'll cause real issues so a bit of pain of having very little spare money and not being able to do what he wants may focus the mind.
    Originally posted by Tarambor
    I love the bit about learning to the ramifications of borrowing from his future self before he get to an age where the real problems set in.
    That is so true, if he does not learn now, when will be every learn.
    I have been reading and replying to posts on here and it amazes me the number of people who are way over their head in thousands of pounds in debt.
    I am not sure how they sleep at night.
    • Dobbibill
    • By Dobbibill 13th Apr 19, 8:24 PM
    • 3,627 Posts
    • 4,855 Thanks
    Dobbibill
    Welcome to the forum Rosie,

    You may not believe it but not being able to be his guarantor at the moment is a blessing in disguise. There are multiple threads all over this forum about how this has gone wrong and that's without the awful APR. It also forces you DS to look at things himself.

    Tell him about this forum, also send him the link to fill out a SOA. This will make him look at his budget when it's written down, which can make a difference seeing it in front of you.

    If he can afford the minimum payments - can he afford any more? An extra 5 or 10 to start chipping away at the debt. Is he able to sell anything?
    You don't say how much the debt is or how much income he has. Parenting doesn't stop when they become adults, it's just a different type of support, moral rather than financial in this instance.

    I wish you both all the best.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
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    • hollydays
    • By hollydays 13th Apr 19, 9:47 PM
    • 17,104 Posts
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    hollydays
    Well what do you suggest?
    The OP nails her son out?
    We’ve all read enough posts similar to this. Sometimes tough love is what you need!
    Originally posted by Edi81

    It was a basic opening post.
    Just a little politeness is good.
    • -taff
    • By -taff 14th Apr 19, 6:30 AM
    • 9,872 Posts
    • 12,684 Thanks
    -taff
    I very much doubt that Stepchange told him to get a consolidation loan.
    They are usually the slippery slope to being in debt for years.


    Get him to fill in an SOA,and post on the debt free wannabe boards.
    • DCFC79
    • By DCFC79 14th Apr 19, 8:23 AM
    • 33,998 Posts
    • 21,461 Thanks
    DCFC79
    He needs to cut back on his spending, the dfw board will help.
    • jonesMUFCforever
    • By jonesMUFCforever 14th Apr 19, 11:53 AM
    • 25,727 Posts
    • 12,955 Thanks
    jonesMUFCforever
    well that was helpful!
    Originally posted by hollydays
    Yes it was - the most helpful reply the OP will get because it is true.
    Last edited by jonesMUFCforever; 14-04-2019 at 11:55 AM.
    What goes around - comes around
    give lots and you will always receive lots
    • hollydays
    • By hollydays 14th Apr 19, 9:32 PM
    • 17,104 Posts
    • 13,290 Thanks
    hollydays
    Yes it was - the most helpful reply the OP will get because it is true.
    Originally posted by jonesMUFCforever
    Again, that's your opinion.
    • jonesMUFCforever
    • By jonesMUFCforever 14th Apr 19, 11:01 PM
    • 25,727 Posts
    • 12,955 Thanks
    jonesMUFCforever
    Again, that's your opinion.
    Originally posted by hollydays
    Well let's hear your opinion here - all you have done so far is deride all who have posted
    What goes around - comes around
    give lots and you will always receive lots
    • Xbigman
    • By Xbigman 15th Apr 19, 3:44 AM
    • 3,218 Posts
    • 1,429 Thanks
    Xbigman
    Rosie.

    Some of the boards on MSE are controlled by little groups who jump on anyone that doesn't spout the party line. The loans board is not like that. Here we have all seen exactly the same things play out over and over again and we have become jaded. Laying things out in a blunt fashion is a natural consequence of that. It should not be taken as any personal criticism.

    From what you have posted I only need to read two things.

    1. Consolidate to save money/clear debts.
    2. Guarantor loan

    You cannot pay off debts by borrowing to do it. You're simply replacing one debt with another. It becomes an endless merry go round that destroys people's lives. When you even consider using a guarantor loan to consolidate there is only one reason. Your son is a bad payer. It's that simple. Even if his borrowing were high he could get subprime credit in the 20 or 30 percent range. 49% guarantor loans are for bad payers. Whether he admits it to you or not is irrelevant, he's a bad payer.
    He has only one way out. Pay the money back. If he really can make the minimum payments he should do so. Any spare money should be thrown at the largest apr debt. Even the minimum payments for a few months will bring the balances down a bit and allow a few pounds overpayment. The more he pays off each month the more he will have the following month to make overpayments. It's called snowballing.
    In your position I would never be a guarantor. I'd give him a few hundred to help get the balance on the first card down a bit and get him going. Tell him I love him then let him get on with it.



    Darren
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
    • tealady
    • By tealady 15th Apr 19, 4:41 AM
    • 3,015 Posts
    • 3,869 Thanks
    tealady
    Rosie
    Lenders base their lending on risk. Your son sounds like he has a poor credit history so he may not qualify for loans at decent interest rates.
    As others have said he has few options.
    1) budget and pay off what he owes, the DFW board is a great source of info and help.
    2) get a guarantor for a loan to clear his debts. HINT do NOT do this yourself if you want a mortgage.
    3) carry on borrowing. Eventually someone will turn the tap off and he will then have to deal with the debts.

    He is an adult, however I am with Xbigman on this. Give him a small sum of money but make it clear that it is to help him start clearing his debts.
    Proud to be an MSE nerd
    Judge people by their achievements, not by their mistakes
    • macman
    • By macman 16th Apr 19, 1:49 PM
    • 43,238 Posts
    • 18,406 Thanks
    macman
    If you really want to help him financially, better to borrow yourself at a non sub-prime rate and lend/give him the money. Same result (you end up paying anyway), but not at an extortionate interest rate.
    NB: consolidating does not 'pay off' your loans'. It just gives you one big loan, and most likely at a greater total cost, even if the monthly sum is lower (as the term is extended).
    No free lunch, and no free laptop
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