Do a runner? Advice needed

[MookieBaylock]

Now lads... I have been a long term user and I want to ask you all for some advice on behalf of a friend. Before the *************************-slapping starts, let me say that it is most certainly not me as I emigrated many years ago to Germany and missed all the Tiger madness.

Okay, story is that my mate has got himself into a little bit of a financial bother which has been compounded by his not being able to find work.

"John" worked in Ireland until 2007 and then emigrated to America which didn't work out as he couldn't find sustainable long term work. He has come home and can't find a job.

He has a credit card which is in debt to the tune of €6,000 and he has a €1,500 euro overdraft. He cannot get the dole for some reason and he says he can't pay it off. I have offered him a job in Germany which won't be well paid enough to service these two debts which he has not made any payment to for about a year. The bank is threatening him. What should he do? I have told him to do a runner which is probably not good advice.

[seabhcan]

Maybe he should sue the bank for lending to someone who had no means of repaying. Causing mental anguish?

[MookieBaylock]

Well I think when he got the loans he was working.

[drbob1972]

well if they are unsecured debts (which i believe they would be) the worst the banks can do it take him to court and obtain a repayment plan from him, however given that he's unemployed and not even able to get social welfare the judge would most likely place a differment on payment until such time as he had an income...

the biggest problem is that if he does a legger is that his credit rating will be fecked for life here in Ireland and possibly further a field, he is far better of being pro active about it and trying to deal at some level with it.......

also has he spoken to MABS ?

[Clanrickard]

Well I think when he got the loans he was working.

Come clean. Negotiate with the bank and tell them the full story. If he is stright with the bank the bank won't do anyhting because if he has no job they'll be throwing good money after bad by suing him.

[MookieBaylock]

If he's employable at all and that's all he owes, it's not serious money. He needs to get a job (preferably in a place where he can afford the rent) and talk to a bank about restructuring his debt.

As far as a job goes, he says there were 2 jobs advertised in his home town's local paper last week - the place has over 20k people - so the odds ain't looking good.

[jfk2008]

His best bet, before he leaves, is to contact MABS (Money Advice and Budgeting Service) and ask them to help him to come to some arrangement with the bank.

They're used to negotiating on behalf of people in debt and they'll probably be able to get the interest frozen so that his debt doesn't increase.

They'll also be able to work out a realistic repayment plan (even if it's only a fiver a week) based on his actual/projected income.

The bank might not be very happy that he's going to Germany but at least he'll be earning.

If he does a runner, he'll never be able to get credit again if he goes back to Ireland.

[seabhcan]

well if they are unsecured debts (which i believe they would be) the worst the banks can do it take him to court and obtain a repayment plan from him, however given that he's unemployed and not even able to get social welfare the judge would most likely place a differment on payment until such time as he had an income...

the biggest problem is that if he does a legger is that his credit rating will be fecked for life here in Ireland and possibly further a field, he is far better of being pro active about it and trying to deal at some level with it.......

also has he spoken to MABS ?

In fairness, thats a much better advice than I gave.

[MookieBaylock]

well if they are unsecured debts (which i believe they would be) the worst the banks can do it take him to court and obtain a repayment plan from him, however given that he's unemployed and not even able to get social welfare the judge would most likely place a differment on payment until such time as he had an income...

the biggest problem is that if he does a legger is that his credit rating will be fecked for life here in Ireland and possibly further a field, he is far better of being pro active about it and trying to deal at some level with it.......

also has he spoken to MABS ?

He is currently staying with his parents and the banks have threatened that they will send around repo men to take his computer, clothes etc. off him (he doesn't have a car).

He also says that what has him in this mess is that when his credit card was at 3.5k, he applied for a personal loan at a lower interest rate explaining to the bank that he couldn't afford the credit card interest and they refused him.

Is the bank liable in that sense, that they gave him a card but wouldn't give me a loan 2 years later for the same amount?

[MookieBaylock]

The bank might not be very happy that he's going to Germany but at least he'll be earning.

If he does a runner, he'll never be able to get credit again if he goes back to Ireland.

He says that he's been told that after 5 years your credit rating goes back to zero. Is that true?

And, who or what is Mabs?