debt

[loukr]

My 19 year old sister has gotten herself into alot of debt. This includes a �1000 credit card, a Topshop store card, a �150 overdraft, and possibly 2 more bank accounts with further �10-�50 overdrafts.

She's paying back her credit card in �25 installments every month, but �15 of that is just interest so that's �10 per month actually making a difference.

She's only working part-time, earning �80 a week but refuses to put if not all, then a decent amount back onto her credit card.

She has told me and my mum that it's other people who owe her the money for the credit card, but upon recent discovery of her credit card statements, it's clear that that's not the case (topshop, HMV, matalan, new look, tesco... the list goes on..).

Her bank statements also prove that she thinks the overdraft she gets is her own money...

Does anybody know of any support she can get so she understands how bad this really is, and what she can do now?

I know I shouldn't have gone through her personal things but I'm so worried she's going to mess up her life before it even begins...

Thanks for any suggestions, Lou xx

[Postdog]

I can't really advise other that to say it's a good job YOU realise the implications and I hope you can sort her out in time. When I was 19 (long time ago) it was very hard to get into debt, and if you wanted something you saved for it. Nowadays it is far too easy to overstretch, and even though I'm careful myself, I am guilty too.

The only practical advice I can offer is that if it comes to it, she attempts to clear her debts with the costliest first (should imagine that's the store cards) and if necessary, sort out payments to others by making arrangements.

I do hope you manage to convince her for her sake.

[saxy_jag]

I have been where she is. My father bailed me out several times. Only after he died did I learn to stand on my own two feet and take full responsibility for my debts.

In short, there's nothing you can do for your sister until she actually asks for help, and if that means she ends up going bankrupt, then that's what it'll have to take, I'm afraid. All you can do is be there for her when it happens, and let her know that just because she's a poor financial manager, it doesn't make her any less of a person.

Do not, under any circumstances, give/lend her money. Food, a few items of clothing etc etc, fine - but no money.

[Mrs R]

You can ask the credit card companies to freeze the interest - they should do this. Also try this registered charity
www.cccs.co.uk - Consumer Credit Counselling.

[loukr]

thank you for all your help and thoughts, I really appreciate it all. Mrs R, I will try out that website shortly. Thanx again! Lou x

[lady_p_gold]

Why is she only working part time one wonders ?????

[loukr]

Lady P, sarcasm won't get you anywhere, she's at college if you must know but I don't think that really matters.

[lady_p_gold]

Well forgive me it wasn't meant to be sarcastic just a genuine question !

[itsallyellow]

I wish I had older, wiser siblings like yourself. I got into a similar situation myself at the same age. I got a full time job and thought I could pay off my debt but instead i just borrowed more and more and it all spiralled out of control. The credit card companies and store cards will only freeze the interest once she has hit problems and missed payments and they'll charge for admin fees and missed payments too. If they did otherwise we'd all be asking them to freeze the interest. Nip it in the bud now, because as soon as she gets a full time job, yes her wages will go up and she'll think she can pay off the debt but the amount she can borrow will go up massivily too and borrowing credit is a bad habit that is extremely hard to brake.

[loukr]

Lady p, I apologise, it just sounded like you were being funny - sorry if this wasn't about my sister I wouldn't have jumped to that conclusion! And itsallyellow, I'm not older, I'm a year younger, Just growing up watching her mistakes made me a wiser person I guess... lol. Lou x