Debt Consolidation Advice
Discussion
My stepson has ended up with several loans and credit cards circa 15k. As with many he has little to show for it other than a few items of furniture and a Citroen DS5 on finance.
Ideally he needs to find a consolidation loan to avoid struggling every month, along with reducing spending on rubbish.
They are coming round tonight so we can help set a monthly budget, and look at reducing spending.
Has anyone any recommendations as to which loan providers maybe worth talking to.
I'm afraid the bank of mum is not an option, she sold him her house at a knock down price which set up his deposit for the mortgage, so he had a good start and was advised to not overspend on cars etc.
TonyR
Ideally he needs to find a consolidation loan to avoid struggling every month, along with reducing spending on rubbish.
They are coming round tonight so we can help set a monthly budget, and look at reducing spending.
Has anyone any recommendations as to which loan providers maybe worth talking to.
I'm afraid the bank of mum is not an option, she sold him her house at a knock down price which set up his deposit for the mortgage, so he had a good start and was advised to not overspend on cars etc.
TonyR
I went with Tesco. Got a better rate as I work for them.
I had around £10k of debt on credit cards along with car finance (£140 a month).
Min payments on the credit cards (two) was around £400 a month.
Loan of £10k over five years and I pay back £214 a month. I also sold the car.
18 months to go.
What I'd recommend is be completely honest with how much he can afford to pay back monthly. I was thinking of doing four or even three years, but it would have been a huge amount of my income each month. £200 a month for me allows me to still have a social life.
I had around £10k of debt on credit cards along with car finance (£140 a month).
Min payments on the credit cards (two) was around £400 a month.
Loan of £10k over five years and I pay back £214 a month. I also sold the car.
18 months to go.
What I'd recommend is be completely honest with how much he can afford to pay back monthly. I was thinking of doing four or even three years, but it would have been a huge amount of my income each month. £200 a month for me allows me to still have a social life.
LosingGrip said:
What I'd recommend is be completely honest with how much he can afford to pay back monthly. I was thinking of doing four or even three years, but it would have been a huge amount of my income each month. £200 a month for me allows me to still have a social life.
Thanks.I guess he needs to balance between not paying back it over too many years, but having a bit for a social life. We've told him it will be uncomfortable for a while and hopefully will not repeat the excess spending in the future.
It's a market full of cowboys, but it might be worth looking at a debt management company.
He'll pay for their help (unless he goes the charitable way in which case they'll take ages and may not help) but that can be counteracted against their ability to help reduce/stop interest on his outstanding debts.
As I say there are some cowboys but also some good companies - the one I worked for up until 2017 was subsumed by thinkmoney
He'll pay for their help (unless he goes the charitable way in which case they'll take ages and may not help) but that can be counteracted against their ability to help reduce/stop interest on his outstanding debts.
As I say there are some cowboys but also some good companies - the one I worked for up until 2017 was subsumed by thinkmoney
Gassing Station | Finance | Top of Page | What's New | My Stuff