Debt Management

Discussion in 'Finance, Property, Law' started by RustyH, Jul 26, 2007.

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  1. Hello,

    Not sure if this is the correct forum for this but I thought that as officers you may have expierence of this kind of problem. Ok preamble over here we go;

    A friend of mine has run up some debt not massive but has the potential to become so. As it stands she owes a total of £1255.14 which includes exceding her overdraft and a rather hefty phonebill. The phone company have already threatened court action and as it stands have orderd she pay back a large amount per week. the crux of the issues is though that she doesn't earn a lot and what she does is weather dependent which is rather unlucky at the moment! She's asked me to help and though I've come up with a few ideas I could do with a hand.

    Thanks in advance,
    RustyH
     
  2. Depends where she stays. the law in England is different from Scotland re debts. If its Scotland I can help a bit more but her best bet is the citizens advice bureau, consumer credit counselling services are also free but avoid companies that charge a fee. There are Trust Deeds (scotland) or IVA's (independent voluntary arrangements England) If she only owes £1255 and doesn't own her own home offer token payments till her work kicks in again but ask for a moratorium (3 month break)
    good luck
     
  3. mysteron

    mysteron LE Book Reviewer

    Rusty - I am not in the sympathy game (as you can probably tell by a lot of my posts) but I do seek to be objective.

    Your 'friend' has to face up to some responsibilities now. There is no quick fix solution now. You need to get ourselves down to the Citizen's Advice Bureau and tell them all of the issues to hand and seek help that way.

    Look for new jobs or declare bankruptcy (I know what I would choose and it isn't the latter). But get some advice and then make some grown up decisions about how to live your lives.

    Take it or Leave it chum........if you want any more help, PM me but I won't give sympathy only stone cold advice.

    I hope you get this sorted. All the best.
     
  4. cpunk

    cpunk LE Moderator

    This is the wrong forum for this... so off it goes to finance.
     
  5. If she's got a nice arse she could flog it on Ebay or Kings Cross! £1200 is not a massive amount. Maybe she should get a job and lay off the Crack Cocaine!

    Option B

    You could pay off her debts, get a shag or 'a hand' :wink: and not have to post on here :D
     
  6. I've suggested that already and its a no go.
     
  7. Okay thaks for the advice all good and helpful the only problem now is shes sticking her head in the sand and planning to ignore the problem. Any tips on getting her to sit up and take responsibility?

    The best example I can give is that she has a reading festival ticket that I suggested she sell because a) you can get £200+ for one and b) it costs alot while there, she however flat out refused. Sorry to bug you guys but you've the expierence I havn't.

    Also Mysteron, I swear this really is a friend not me I like to pretend I'm not this dumb.

    Thanks again
     
  8. mysteron

    mysteron LE Book Reviewer

    Rusty - fair nuff.

    If she is planning to ignore the problem - I would suggest that you look at ways of de-risking yourself. Don't let someone else feck up your life because they cannot face up to their problems.

    Horse and water spring to mind.
     
  9. First lets be positive, in the grand scheme 1200 is not big money and it is good she is worrying now not when it gets many times that as many do. Yes it is big compared to her free cash but it is not likely to ruin her life if she does some thing now.

    All that stuff about seeing the CAB is good, they can put her in touch with experts and peple who have lots of experience.

    The big thing is t avoid borrowing more to get one leech of her back if at all possible. It is worth seeing if the bank will give her an extension to her overdraft even for a short period to help her get things under control. If they know she really does mean to sort it out they are more likely to help. It is worth ensuring the money is at as low an interest rate as possible, every 10% is 120 a year more to pay back, sobering thought when you are struggling to eep the head above water.

    The big things are really cutting expenditure, remeber many essentials are really extras that should only be indulged in when the cash is there. If she smokes, now is a good time to stop, and there is free help for that.

    Finally look for ways of improving the inwards cash flow, changing jobs can be good, it seems overtime stuff is in short supply for her at the moment but there are various part time jobs that can come up which have a double benefit, they provide income and stop outflow because you cant be out spending whilst working. Also bin the contract phone, change to PAYG, will help her control those costs and can be pretty cheap. Tesco do a good deal on a SIM card and Asda are supposed to be selling a phone and card for £9.99 just now.
     
  10. Best COA is to speak directly to both the bank and the phone company and come to an arrangement of what can be paid and by when? Both organisations would rather have all their money back in slow time than force you into a position where they probably will have to write the money off.
     
  11. Some good advice in the various posts. I'll add that although £1200 is a lot of money, I have seen much, much worse!

    If she has her head in the sand - and your comment about her attitude to the tickets for the festival are a good combat indicator - I fear you aren't going to make any progress. I would either maintain your distance or put some distance between you, because there will be a lot of mess on the floor before she wises up! And then she will need a good friend to help pick up the pieces!

    If she won't listen to advice now, she is going to hell in a handcart and there is nowt you can do about it; she has to wake up and smell the coffee.

    Litotes
     
  12. Why not suggest that she switches her job to Umbrella salesman. Then she'd make a fucking mint.

    Are you trying to bone her?
     
  13. If she is refusing to sell her Reading ticket to help pay of the debt then she can't be that bothered.

    I used to be a debt recovery officer and the worst thing she can do is ignore the problem.

    With the phone bill she could ask that her line be changed to accept incoming calls but not allow her to call out. That would stop it building up any more. If she can pay a little each month this will help and should not involve Court Action.

    As for the overdraft she should call into the bank and expalin the situation re her job.

    If she gets taken to court then she will have to give proof of her income and expenses. This will be taken into consideration. If she is taken to court for a county court judgement to be made against her she should turn up. It shows willing. A CCJ is not hte end of the world. You cannot be imprisoned for a debt and they cannot get blood out of a stone.
     
  14. Hi, I worked for a large banks so my advice for her is to try and demand back her charges, This may reduce her debit balance a lot, also ask the back to reduce the overdraft by the amount returned. She can also demand that if this adversely damaged her credit record then she can insist the bank repair the damage done.

    This can be a drawn out process but at least it is a chance worth trying.

    I agree with the mobile phone advice

    Good Luck, if you need a help with the bank, I am happy to help you if you PM me
     
  15. unlikely bank charges will be returned now that the banks have finally taken test case to court...