2006-11-02 11:50:25 · 13 answers · asked by Anonymous in Business & Finance ➔ Credit
The advice you've already read is good advice... Do NOT lend your friend money. I've done it and lost both my money and my friend(s). I did it twice... one for $500 and the other for $500 that turned into $1300 after late fees and overlimit fees accumulated without my knowledge. There are organizations out there that can help your friend. I am providing a link below for you to click the "take the first step" button for more information. The reason for your friend's debt is that they are spending more than they earn and not saving. Only they can determine the difference between wants and needs. The best ratio is to have 50% of income for needs (rent, utilities, food, etc), 30% to wants, and 20% to savings. Having been on unemployment I know what it's like to have to live on 1/2 of my income for six months. It's not fun... it's not easy... but keeping the needs to a manageable ratio just in case will allow for more savings (off the top) and still have some fun money for the little extras. A $10 pair of jeans is a need ... a $40 pair is a want. It's a choice of whether your friend wants one pair of $40 jeans or four pairs of $10 jeans. It's important to shop around for things to get more for your money so make it a game. I drive a Hyundai Accent with a $110/month car payment. It gets me where I am going. Others I know are driving $300+ per month car payments. Again, it's a choice. Help your friend make wise choices. Have him/her run their lives like a business plan by thinking of assets and liabilities, profit and loss, and whatever it takes. He/she can consider increasing income or decreasing expenses or a combination of both options. Debt didn't occur overnight so it won't be gone overnight either. Look into the consumer agencies below:
2006-11-02 12:12:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Do not give him any money.
Clearing debt is fairly easy, if he is willing to work at it. Have him gather up all of his current statements. Put them in order, lowest to highest. (Don't worry about interest rates. Doing it this way gives you a sense of accomplishment quicker.) Pay the minimum on all bills with the exception of the lowest. Put as much money on the smallest debt as possible.
He needs to get his income up as well. He should see about getting a second part time job. He should be working at least 60 hours a week. He won't have much fun, but it's more fun to be debt free than drowning in debt. Check out Dave Ramsey's website as well.
2006-11-02 13:49:33 · answer #2 · answered by CCTCC 3 · 0⤊ 0⤋
Trust me, don't lend him money! Don't co-sign any loans, don't do anything that will put you responsible for his debts! I've lost a couple of friends that way. After awhile, the stress of money breaks the friendship down with feelings of resentment and all....from both sides.
Instead, lend him encouragement...help him to say "no" to spending when you're out together. Help him make up a budget, even.
2006-11-02 12:03:11 · answer #3 · answered by schaianne 5 · 0⤊ 0⤋
no longer in a million years ! Been burned by skill of "close friends" too many circumstances on quantities decrease than $50K. while it is composed of money people get incredibly grasping, surprisingly while managing OPM(different Peoples money). of course this close frinend has lousey credit and can't get a private loan. Now if a financial corporation considers him too numerous a threat what makes you think of he will pay you lower back ? maximum small companies over 50% fail interior the 1st 6 months. 80% interior the 1st year. 5% of no longer something remains no longer something. you would be caught procuring this friends "corporation theory for years yet to return.
2016-11-27 00:24:37 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I agree 1000% with the others that said DO NOT LEND HIM MONEY... also...
Assuming it is credit card debt, have him read the article linked to below called, "The Most Effective Way to Pay Off Your Credit Card Debt".
2006-11-02 12:44:39 · answer #5 · answered by perfectcreditclub 3 · 1⤊ 0⤋
Find websites to which show him how to budget his money (so he doesn't wind up in the same situation again) and some sites about repairing your credit. Go to a real site, like myFICO.com, instead of one for a credit repair service. If he will read it, get him a book about repairing his credit. Don't lend him money, because it will only help him short-term. He needs a long-term solution.
2006-11-02 12:37:41 · answer #6 · answered by Mariposa 7 · 1⤊ 0⤋
If he has a large amount of debt, you can suggest he go to a legitimate credit counseling service - but be careful, as some scam people.
2006-11-02 11:59:00 · answer #7 · answered by Anonymous · 1⤊ 0⤋
I hope this helps you:
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
2006-11-02 23:28:17 · answer #8 · answered by sing i 2 · 0⤊ 0⤋
You can offer advice, but keep your purse closed. The quickest way to lose a friend or family member is to loan them money.
2006-11-02 11:57:56 · answer #9 · answered by ? 6 · 1⤊ 0⤋
remeber even own blood family members can break due to $.. if u help your close friend settle his debt..don't expect him to return you..else your friendship sure break
2006-11-02 13:50:41 · answer #10 · answered by dior babe 3 · 0⤊ 0⤋