Debt Consolidation

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#1937754 12-Jan-2018 17:16

Get him to study for a semester. His education would be free (if he hasn't studied before). He could claim 1k interest free for course related costs. There's 1k wiped offf his debt. He could probably get an interest free student overdraft (I was able to get 2k). He might be eligible for a student allowance to supplement his income. Once he receives an allowance, he'll be in "the system", so he could probably ask for some sort of extra financial to help him get on top of his bad debts. Not bad being a student aye.

semi-serious comment

I'm surprised he was rejected by Harmoney. I invest with Harmoney and the bar seems to be quite low.

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#1937756 12-Jan-2018 17:19

If it all gets too much, there's always bankruptcy. Better that than depression and suicide (Not that I'm suggesting that would be the outcome in this case, but it has been in many I am sure).

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#1937762 12-Jan-2018 17:37

It's hard for a young un to be saddled with so much debt.

Even worse when you are doing your best to pay down these debts, and missing hanging out with your mates going to the pub, beach, crusin' around and all those entertainment experiences that that they will miss out on whilst trying to save money.

And then they go, "fcuk it all, I'm going out and gonna spend up large and have a damn good time !!!"

It takes an enormous amount of will power to NOT do that, and be stuck at home on the weekends while your mates are out having a grand ol time.

Though it does sort out who your real friends are, and those that are just good-time mates.

Starscream122

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#1937765 12-Jan-2018 17:45

Sam91:

Get him to study for a semester. His education would be free. He could claim 1k interest free for course related costs. There's 1k wiped offf his debt. He could probably get an interest free student overdraft (I was able to get 2k). He might be eligible for a student allowance to supplement his income. Once he receives an allowance, he'll be in "the system", so he could probably ask for some sort of extra financial to help him get on top of his bad debts. Not bad being a student aye.

semi-serious comment

I'm surprised he was rejected by Harmoney. I invest with Harmoney and the bar seems to be quite low.

How do you know it will be free?

It's only free for those that have not studied before

Aredwood

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#1937766 12-Jan-2018 17:51

What sort of car does he have? Has he fallen into the trap of buying a fast but cheap car. Meaning high fuel costs, high servicing and maintenance costs and high insurance costs. If he struggles to afford new tyres, how is he going to be able to pay for servicing?

Also secured car loans often have massive add on insurance costs, which can be a massive part of the costs. So often selling the car or otherwise getting out of the car loan can be the best option. As the insurance costs can then be reduced to 3rd party only. Consider refinancing just the car loan. As not having security interests in the car gives more options.

Assuming he is not behind in the credit card payments, ask the bank to change them to low interest cards. He is highly unlikely to get lower rates than those for unsecured debt. And it removes the need to build up a savings buffer until he is debt free. As all surplus income can go on the card. And he can re borrow again if needed.

Starscream122

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#1937768 12-Jan-2018 17:52

Geektastic: If it all gets too much, there's always bankruptcy. Better that than depression and suicide (Not that I'm suggesting that would be the outcome in this case, but it has been in many I am sure).

I wonder why the suicide rate in NZ is higher then everywhere else....

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Geektastic

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#1937773 12-Jan-2018 18:04

Starscream122:
Geektastic: If it all gets too much, there's always bankruptcy. Better that than depression and suicide (Not that I'm suggesting that would be the outcome in this case, but it has been in many I am sure).

I wonder why the suicide rate in NZ is higher then everywhere else....

No idea. But bankruptcy would be a better route than that

Detruire

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#1937776 12-Jan-2018 18:11

Geektastic:
Starscream122:

Geektastic: If it all gets too much, there's always bankruptcy. Better that than depression and suicide (Not that I'm suggesting that would be the outcome in this case, but it has been in many I am sure).

I wonder why the suicide rate in NZ is higher then everywhere else....

No idea. But bankruptcy would be a better route than that

Clearly some people don't think so.

rm *

Aredwood

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#1937780 12-Jan-2018 18:17

Sam91:
Get him to study for a semester. His education would be free (if he hasn't studied before). He could claim 1k interest free for course related costs. There's 1k wiped offf his debt. He could probably get an interest free student overdraft (I was able to get 2k). He might be eligible for a student allowance to supplement his income. Once he receives an allowance, he'll be in "the system", so he could probably ask for some sort of extra financial to help him get on top of his bad debts. Not bad being a student aye.

semi-serious comment

I'm surprised he was rejected by Harmoney. I invest with Harmoney and the bar seems to be quite low.

Assuming he is working full time, how will he find the time to also study? Presumably he will have to actually attend classes as well. Which means extra expenses. Only go the study route if the course actually offers the opportunity for a decent pay rise when done. There are lots of qualifations available which are worthless as a career option.

As for Harmony, they (along with every other lender) Are bound by the responsible lending code. Which means that they have to ensure that the repayments are affordable. As a result, someone with a good credit rating but low disposable income gets declined. While someone else with a bad rating can still get a loan approved if they have high disposable income.

That code also makes it a lot harder for young people to buy their first house.

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#1937781 12-Jan-2018 18:19

why not family loan???

Geektastic

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#1937786 12-Jan-2018 18:29

Detruire:
Geektastic:
Starscream122:

Geektastic: If it all gets too much, there's always bankruptcy. Better that than depression and suicide (Not that I'm suggesting that would be the outcome in this case, but it has been in many I am sure).

I wonder why the suicide rate in NZ is higher then everywhere else....

No idea. But bankruptcy would be a better route than that

Clearly some people don't think so.

Those people probably are suffering from depression etc etc.
My purpose in making the connection was to draw attention to a possible outcome that I'm sure no one wants to see.
If Ops nephew really can't get out from under this, bankruptcy is the better choice I am sure all would agree.

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#1937803 12-Jan-2018 19:03

MichaelNZ:

Right now they are throwing money around like there is no tomorrow and it is most certainly true that single staff members can approve generous credit limits.

Yes, but they like to throw it to those who don't need it as such.

Young guys, no years of steady to show, who already spend like there was no tomorrow are not high on their list.

JayADee

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#1937866 12-Jan-2018 21:02

He doesn't really sound like a perfect fit for this but it's worth reading I guess: https://www.insolvency.govt.nz/personal-debt/personal-insolvency-options/no-asset-procedures/

networkn

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#1937902 12-Jan-2018 23:26

evnafets:

$190 a fortnight over two years is 9880. Which is close to $10K, ignoring interest.

If I understand networkn the car finance is probably "reasonable" interest while the 10K debt is "unreasonable". Credit cards? Finance companies? Loan sharks?

So I take it the aim is looking for $10K debt consolidation to repay the "unreasonable" interest debt, and pay it off the same time as the Car loan.

However that extra $10K owing on the car would be relevant in getting a consolidation loan I'm sure.

Just wondering: What sort of interest rate would be deemed "reasonable"? Even the peer to peer lenders would be up at the 10-15% interest rate I'm sure.

Yes, so he has 10K of Debt which is at very high-interest rates, he also went and got finance to pay other finance companies who were putting him under pressure.

It's a big learning curve for him and as for interest rates, ideally under 16%.

The car loan is secured by the car, so I wouldn't expect it to be a big factor.

networkn

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#1937906 12-Jan-2018 23:54

I am pretty surprised that there aren't any reputable lenders prepared to take this debt on, honestly. He has a decent income, and consolidated, his debt is very manageable.

We will contact the CAP and see what they suggest.

We don't want to bail him out this time (he already owes us some money), he needs to learn that family are not his personal bank and live in the real world and deal with his consequences. I am prepared to give him some guidance, go with him to meetings and keep his head straight. He can be a little emotional especially when stressed so keeping him focused is the best thing right now.

10K debt isn't a big deal honestly, it's the interest rates that are the major issue.

Was very surprised his profile looked so bad Harmoney wouldn't help him. Hard to see he would be worse off than some others who borrow.

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