Anyone know the best debt solution?
16 September 2004, 02:43 PM
#1
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Anyone know the best debt solution?
Doesn't apply to me personally 
(yet 
) but a girl I work with has got herself into a bit of debt.
She owes about £4k to various people, 2 banks, 1 credit card, and a mobile phone company.
She can't get another bigger loan to pay all these off as she got into this debt through quitting her last job and missing payments, which consequently resulted in more charges etc. and just didn't bother to do anything about it at the time
.
She now has a steady job but no one will touch her.
She really want's to get it sorted now so what is her best plan of action????
(yet ) but a girl I work with has got herself into a bit of debt.She owes about £4k to various people, 2 banks, 1 credit card, and a mobile phone company.
She can't get another bigger loan to pay all these off as she got into this debt through quitting her last job and missing payments, which consequently resulted in more charges etc. and just didn't bother to do anything about it at the time
.She now has a steady job but no one will touch her.
She really want's to get it sorted now so what is her best plan of action????
16 September 2004, 02:47 PM
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She should be able to contact her creditors and explain the situation, and then agree repayment terms that are affordable to her. Alternatively, they may not be interested, but most lenders would rather get their money back slowly than waste money in court actions etc,
16 September 2004, 02:58 PM
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Thing is it's not just a matter of getting another loan to pay these people off she has to change her whole attitiude towards money and debt.
Problem most people have when they get a consolidation loan is they immediately go back to their old ways and before they know it have double the debt they had before.
My initial advice would be to cut up all her credit and store cards as they seem to be the downfall for most people. Some people don't want to do this in case of emergency situations so cut up all the cards except one and put this in a bowl of water in the freezer. The idea with this is that if you want to buy something you have to go home and thaw out the card first which should help with any impulse buys.
Next she should look at her monthly outgoings and see where she can cut back on things. Cancel any gym membership, convert your mobile to pay as you go (or get rid of it), cut back on your Sky TV package, take sandwiches to work instead of buying lunch each day etc. etc. all of these things should save a fair amount of money each month.
Another good thing is to register with www.fool.co.uk and have a look at the dealing with debt and living beneath your means boards which have loads of good advice.
Problem most people have when they get a consolidation loan is they immediately go back to their old ways and before they know it have double the debt they had before.
My initial advice would be to cut up all her credit and store cards as they seem to be the downfall for most people. Some people don't want to do this in case of emergency situations so cut up all the cards except one and put this in a bowl of water in the freezer. The idea with this is that if you want to buy something you have to go home and thaw out the card first which should help with any impulse buys.
Next she should look at her monthly outgoings and see where she can cut back on things. Cancel any gym membership, convert your mobile to pay as you go (or get rid of it), cut back on your Sky TV package, take sandwiches to work instead of buying lunch each day etc. etc. all of these things should save a fair amount of money each month.
Another good thing is to register with www.fool.co.uk and have a look at the dealing with debt and living beneath your means boards which have loads of good advice.
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