How to not be eligible for storecards, etc.?
Discussion
My friend/lodger has an online shopping problem. She knows it, and says she wants to do something about it.
She has 2 jobs, earns a decent amount for this area. She is always down to her last pound by payday, but has always paid her rent etc. on time.
She already has an IVA from nearly 5 years ago, but that doesn't stop her getting more credit via storecards. She buys loads of clothes and shoes that never get worn, and stuff like cuddly toys and ornaments. She gets online "payday loans" to cover the shortfall, or arranges payment holidays.
She'll then sell stuff at a big loss, clear some of the debts, then the cycle begins again.
I don't understand how someone with an IVA gets accepted for so many relatively small loans? She's usually juggling between 5 and 10 at any one time.
How can you voluntarily make yourself ineligible for these things?
She has 2 jobs, earns a decent amount for this area. She is always down to her last pound by payday, but has always paid her rent etc. on time.
She already has an IVA from nearly 5 years ago, but that doesn't stop her getting more credit via storecards. She buys loads of clothes and shoes that never get worn, and stuff like cuddly toys and ornaments. She gets online "payday loans" to cover the shortfall, or arranges payment holidays.
She'll then sell stuff at a big loss, clear some of the debts, then the cycle begins again.
I don't understand how someone with an IVA gets accepted for so many relatively small loans? She's usually juggling between 5 and 10 at any one time.
How can you voluntarily make yourself ineligible for these things?
heisthegaffer said:
Has your friend considered getting any help as this is an addiction like any other?
Hope she gets sorted mate.
Definitely an addiction.Hope she gets sorted mate.
I understand it - to a degree - as I can go a bit crazy collecting stuff myself. Never to the point of getting into debt though. I always keep a decent amount in savings, and I swing between scrimping and saving, and "wasting" money on non-essential stuff.
Having an IVA doesn't mean you can't get credit, it just likely means you can only get credit from the low limit, high interest rate places .. like , er, storecards. They love people like your friend. But yeah, sounds like she has a problem with it.
Some resources here ..
https://www.moneyhelper.org.uk/en/money-troubles/d...
Some resources here ..
https://www.moneyhelper.org.uk/en/money-troubles/d...
Edited by bigandclever on Saturday 17th February 12:38
ferret50 said:
Do you think that your lodger/friend is a compulsive online buyer?
Would removing access to internet help?
Perhaps a new hobby? (mending clocks springs to mind....)
She's 59 years old, don't think banning internet use would go down too well, lol.Would removing access to internet help?
Perhaps a new hobby? (mending clocks springs to mind....)
Too much free time is part of the issue though, and a hobby that she stuck with would reduce shopping time. She does start new hobbies/pastimes, but quickly loses interest.
We've tried puzzles, board games, Lego, computer gaming, DIY, Cricut, cross stitch, crochet, knitting - all in the past 2 years.
I wonder if this is an issue that womens' support groups deal with?
There's a local group that's always posting on Facebook.
Getting help via the GP is a non-starter in Cornwall. All mental health support here is subbed out. The GP will just say to contact them yourself - no queue-jumping with a GP referral. I've been down that route myself with depression in the past. All the GP did was give me a sick note and an email address. 3 months wait for an appointment, and all you get is a maximum 6 CBT sessions.
There's a local group that's always posting on Facebook.
Getting help via the GP is a non-starter in Cornwall. All mental health support here is subbed out. The GP will just say to contact them yourself - no queue-jumping with a GP referral. I've been down that route myself with depression in the past. All the GP did was give me a sick note and an email address. 3 months wait for an appointment, and all you get is a maximum 6 CBT sessions.
clockworks said:
How can you voluntarily make yourself ineligible for these things?
Have £1M in the bank and never borrow anything. That should knacker your so-called credit score...I agree with the compulsion/mental issue though. And she definitely needs to sit down with a debt counsellor and work out a plan.
I'm forming an idea for a 'virtual Amazon', like virtual trading. You can browse all the goods, buy whatever you like, but they don't take any money and don't send anything. Better still, it saves you having to send it back because it doesn't fit
Edited by Simpo Two on Saturday 17th February 21:59
E63eeeeee... said:
Has your friend/ lodger considered being tested for adult ADHD? Or at least doing some reading about it and potential coping strategies. The compulsive shopping and the picking up and dropping interests are both pretty common flags.
She has borderline personality disorder.She could add a notice of correct to her CRA.
Usually, it's used to explain missing payments etc, but I'm sure you could say something like.
I suffer from BPD and borrow compulsively when I should not.
There was a legal requirement by any potential lender to read them in the past, I don't know if there is now, or whether the gutter payday loan people would care.
Failing that, Bankruptcy isn't a bad solution for her if it would cause her employment issues. We usually see it as a last report when we run out of money, but it's an admission that we've lost control of our finances and need help. The court might not agree to it, but they f
king hate sub prime lenders and if she can prove her BPD diagnoses I'm sure they would love to smash them like the fist of a vengeful god. (I'd like to think so anyway)
As ever though, Step Change are the people to speak to.
Usually, it's used to explain missing payments etc, but I'm sure you could say something like.
I suffer from BPD and borrow compulsively when I should not.
There was a legal requirement by any potential lender to read them in the past, I don't know if there is now, or whether the gutter payday loan people would care.
Failing that, Bankruptcy isn't a bad solution for her if it would cause her employment issues. We usually see it as a last report when we run out of money, but it's an admission that we've lost control of our finances and need help. The court might not agree to it, but they f
king hate sub prime lenders and if she can prove her BPD diagnoses I'm sure they would love to smash them like the fist of a vengeful god. (I'd like to think so anyway)As ever though, Step Change are the people to speak to.
P-Jay said:
She could add a notice of correct to her CRA.
Usually, it's used to explain missing payments etc, but I'm sure you could say something like.
I suffer from BPD and borrow compulsively when I should not.
There was a legal requirement by any potential lender to read them in the past, I don't know if there is now, or whether the gutter payday loan people would care.
Failing that, Bankruptcy isn't a bad solution for her if it would cause her employment issues. We usually see it as a last report when we run out of money, but it's an admission that we've lost control of our finances and need help. The court might not agree to it, but they fking hate sub prime lenders and if she can prove her BPD diagnoses I'm sure they would love to smash them like the fist of a vengeful god. (I'd like to think so anyway)
As ever though, Step Change are the people to speak to.
She has spoken to Step Change. They will help her set up some kind of debt management plan, but apparently they can't do anything until her IVA comes to an end next month.Usually, it's used to explain missing payments etc, but I'm sure you could say something like.
I suffer from BPD and borrow compulsively when I should not.
There was a legal requirement by any potential lender to read them in the past, I don't know if there is now, or whether the gutter payday loan people would care.
Failing that, Bankruptcy isn't a bad solution for her if it would cause her employment issues. We usually see it as a last report when we run out of money, but it's an admission that we've lost control of our finances and need help. The court might not agree to it, but they f
king hate sub prime lenders and if she can prove her BPD diagnoses I'm sure they would love to smash them like the fist of a vengeful god. (I'd like to think so anyway)As ever though, Step Change are the people to speak to.
I don't think bankruptcy would be good for her - her main job is working for a local accountant
She has decided to go for bankruptcy.
The thing that concerns me is, will it affect my credit rating?
For some reason, my Clearscore report is showing her as a "financial connection".
I have never knowingly taken a joint account/loan of any kind with her. The only thing I can think of was a car loan, paid off a year ago, in my name and paid from my bank account, but with the car registered in her name. She transferred the money to me each month.
Her old car was part exchanged against the "new" one, settling the loan which was in her name.
Would that have generated the "financial connection"?.
If it did, shouldn't the connection have ceased when the car was sold and the loan paid off a year ago?
I've contacted Clearscore to find out what the connection is.
Edit:
Talked her out of bankruptcy. The figures just don't stack up. She just about earns enough each month to service her debts. Going bankrupt, she would still have to make payments every month.
She spent a few hours yesterday on the phone to several lenders, trying to sort out repayment plans. None of them were interested, as she hasn't actually missed any payments yet.
Despite having an IVA and no assets, she has managed to get 5 credit cards in the past 3 months, all are now maxed out. 8 storecards too. Around £7k borrowed in 3 months, and nothing worthwhile to show for it. Just loads of branded clothing and handbags that will mostly never get used.
The thing that concerns me is, will it affect my credit rating?
For some reason, my Clearscore report is showing her as a "financial connection".
I have never knowingly taken a joint account/loan of any kind with her. The only thing I can think of was a car loan, paid off a year ago, in my name and paid from my bank account, but with the car registered in her name. She transferred the money to me each month.
Her old car was part exchanged against the "new" one, settling the loan which was in her name.
Would that have generated the "financial connection"?.
If it did, shouldn't the connection have ceased when the car was sold and the loan paid off a year ago?
I've contacted Clearscore to find out what the connection is.
Edit:
Talked her out of bankruptcy. The figures just don't stack up. She just about earns enough each month to service her debts. Going bankrupt, she would still have to make payments every month.
She spent a few hours yesterday on the phone to several lenders, trying to sort out repayment plans. None of them were interested, as she hasn't actually missed any payments yet.
Despite having an IVA and no assets, she has managed to get 5 credit cards in the past 3 months, all are now maxed out. 8 storecards too. Around £7k borrowed in 3 months, and nothing worthwhile to show for it. Just loads of branded clothing and handbags that will mostly never get used.
Edited by clockworks on Thursday 7th March 08:10
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