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DP & debt!

3 replies

askingforafriend22 · 31/07/2019 07:57

I've been with my partner for nearly 2 years. Yesterday he broke down in front of me and admitted he has debts that he's struggling to pay back. Mainly in the form of payday/ short term loans for varying amounts totalling around £9k
He changed jobs about 7 months ago and took a considerable pay decrease with the view to getting a higher wage after 6 months (that's how the job was sold to him - 'trainee' wage for 4-6 months then moved to the actual better wage after). It hasn't worked out like that and they seem to be constantly dangling the carrot of being moved up but without it actually happening despite the fact that he's now doing the job. Anyway, he says this debt has been run up over this time (although I have no idea how someone smashes through £9k in the space of 7months on top of their normal wage with nothing to show for it 🤔)
We don't live together and we have no joint finances so it doesn't affect me directly and I certainly won't be offering to help pay this debt, however I'd like to know how to help him help himself IYSWIM!
I sat down with him yesterday and went through all his bank statements listing all his outgoings (not including the loans they total around £1300 per month) and what his income is (approx £1800 after tax) and then I made him ring round and get settlement figures from everyone he owes money to.
What's the next step? Where should he go?
Any advice appreciated!

OP posts:
BarbaraofSeville · 02/08/2019 13:07

He needs to go through everything relevant here:

www.moneysavingexpert.com/family/money-help/

Putting the debt aside for a minute, can he afford to pay his basic living costs (rent, travel, bills, food) from his income? Has the debt built up from normal living costs or living a nicer lifestyle than he can afford? Any big bills like car repairs, holidays or just lots of smaller expenses?

Could he move closer to work/somewhere for cheaper rent?

Walk or cycle instead of public transport/car?

Craptop · 02/08/2019 13:10

Oh gosh poor him. As someone who has struggled with debt it might have taken a lot for him to tell you and I bet it's a huge weight off for him to have done so!

You can ask companies to freeze interest. I would call each one and say I'm struggling to pay and to discuss a payment plan with them. I bet that Martin Lewis chap has some great practical and technical advice.

Craptop · 02/08/2019 13:12

And I bet the £9k is from the combination of interest and robbing people to pay Paul. £1300 a month is HUGE. There must be something he can do. Loan consolidation if his credit rating is good enough?

First things first he needs to get that number right down with the calls to the companies -'please freeze my interest and I can afford to pay xx a month'

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