ADP

Hi All

My housemate is in serious debt, its getting worse and although hes on reasonable money now he has no self control so its still getting worse - he spends like its the end of the world - even if he doubled his wage he would just spend it.

His overdraft is £4500 and increasing, his credit card is £6000 and he has a loan to pay off debt (no car or large item to hand back) for something like £25000.............The only reason I know this is that he leaves his bank and credit card statements all over the house and doesnt give a toss.

He earns 30-35k but has only this month started earning that money. My real question is when will the bank say no we cant increase your overdraft/loan/card limit ?? or will they just keep dangling the carrot???

ADP

ProperCharlie

Basically, the banks will start saying "no" when he starts defaulting on his payments. Then his credit rating will go to sh*t and everyone will start wanting their money back. Then he'll go and get a "consolidation" loan at extortionate interest rates. Eventually he will be kicked out of the house and end up sleeping on a park bench and drinking super brew.

hth.

De Warrenne

Amen to propercharlie

Fankly some people don't learn until the **** hits the fan

Petem95

I think theres a hell of a lot of people in a similar situation to him. Theres been a credit frenzy in the last few years and its got completely out of control - people have seen the value of their home rise hugely, so they 'feel' really well off and borrow against it. Anyone can buy almost anything now on credit! Cant carry on forever tho - just like the housing market, there will be a correction.

MattN

It doesn't sound that bad.

I owe about the same and earn less and have no problem making the payments.

ProperCharlie

I would say that over £35,000 of unsecured debt, with no significant assets to show for it, is quite bad, but each to their own.

It must be great to be able to pay twice the retail price for unnecessary electrical goods, by buying them on credit.

SiDHEaD

I have a large debt problem - albeit about 15k short of your friend LOL, and still make the payments on a wage which is 15k less. He should be fine. As long as he is making the payments, the bank are getting their interest off him and he is getting the stuff he wants. As long as he doesn't mind wasting all that money on interest he probably feels he doesn't have a problem.

boomer

Therein lies the problem!!!

mb

dba

silly pillock

Scooby96

Usually when you need it!

T4molie

Christ And here's me getting twitchy about having £600 on a Barclaycard for 1 month

I used to be completely sh!te with money until I met my current missus - 18 y/o just finished A-levels, didn't want to go to Uni, got a job earning 8k a year and instantly put myself in 14k of debt Yeah it was having some nice things at the time but basically spent almost 3 years working my ar$e off to get it paid off after I wised up

As someone has mentioned above, your mate won't change until he realises how he's living or the **** hits the fan

Cheers

Andy

03-CTR

Don't know about the bank bit but I'd think of an alternative means of accomodation for either yourself or your housemate.

Not sure if things have changed but if they haven't (since a few years back) then your credit rating may be affected by your mate. Credit history is usualy linked to properties that you have lived in (and are not specific to an individual) so if he ***** up then it may cost you in the long run.

Brendan Hughes

Do you know salsa-king?

http://bbs.scoobynet.co.uk/showthread.php?t=399093

T4molie

You would have to declare yourself as not financially linked to that person (can't remember the exact terminology). A few years ago a younger brother of mine messed up big time on some bank loans and current accounts and consequently his credit rating sank lower than the Titanic - cos his home address was down as the same as mine (ie parents home address) it completely screwed my credit rating.

A couple of quick letters to the credit checking agencies and all was fine again

Silvafox

iTrader: (1)

Yeh you can get a 'Financial Diassociation Form' from experian and equifax etc http://www.uk.experian.com/consumer/index.html

unclebuck

"Computer says no..."



LOL

T4molie

That's the one

gsm1

Banks will keep on lending providing you make some sort of payment. They don't even mind the odd default as the charges they bang on make them good money. I know a guy who is paying 1k in charges alone per month. I've tried convincing him that he needs to change his lifestyle but he just couldn't give a crap, so I've given up.

scoob_babe

Just don't feel bad about not lending him money if he asks you for it. He's completely financially immature and deserves to be clobbered when he eventually defaults on payments. Why would banks etc stop giving him credit when he's the perfect, high spending idiot that they love for interest repayments?
Yes, this might be harsh but there's sod all you can do, its his mess and only he can get out of it if he wants to (and no, I don't spend what I don't have either!)