Debt Management

#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
 

mysteron

LE
Book Reviewer
#3
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.
 
#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
SuperTrooper said:
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
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
 

mysteron

LE
Book Reviewer
#8
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
RustyH said:
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
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
RustyH said:
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
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
RustyH said:
what she does is weather dependent which is rather unlucky at the moment!
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
 
#16
RustyH said:
...she doesn't earn a lot and what she does is weather dependent which is rather unlucky at the moment!
suntan lotion sales agent?

what about changing career?
 
#17
hellfyyr said:
unlikely bank charges will be returned now that the banks have finally taken test case to court...
All incidences of people requesting a payback of charges involving banks taking part in the test case have been put on hold until the case is complete. At the end a decision will be made, either way the banks stand to pay out a lot of money and will then probably charge for even using a basic account.

I would add to the advice given aready that £1200 is not a massive amount. However if she is really bothered and wants to sort it out she would sell her festival tickets. Only a couple of sacrifices over a limited period of time would bring her back into the black, then she can party away to her hearts content. But Rusty you could wait until she is really desperate for cash and move in for your own business opportunity!!!!!
 
#18
The absolutely worst thing anyone with too much debt can do is try to ignore it- it won't go away!

Anyone who finds themselves is a position where their debts are going up and their money is not lasting to the next pay cheque MUST sit down and write themselves a budget. Living for today and borrowing where you can is a short term strategy and doomed to failure in the medium term. £1200 is not a huge amount but ignoring it will eventually lead to more strife. The FSA is now offering some advice on their website, Money Made Clear

I see people with debt problems quite regularly, (I'm an IFA with contacts with the local Money Advice Centre), the biggest in the last 12 months was £96,000 on an income of £21,000 where the only realistic outcome was bankrupcy.

Being only in a small amount of debt, your friend has choices, she can deal with it and feel good about herself or she can stick her head up her arrse and brace herself to be done over by her bank, phone company and everyone else she will owe money to.

Just the loss of self-worth can be disabling, the bankrupt above had lost his wife, kids, house and car before he started to do anything positive, he nearly lost his job - don't leave it too late.
 

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