What is debt?

How did we get here?

Prevention

Facing Facts

F.A.Q.

Link to Us

Advice

Bills Due

Mortgages

Credit Cards

Bank Loans

Bank Accounts

Court Action

Debt Collectors

Bailiffs

IVAs (Individual Voluntary Arrangements)

Bankruptcy

Pensions

Benefits

Savings

Relatives

Treasures

Case Studies

What do I do?

Credit Status

Useful Links

Your action plan

Relatives

Got a rich auntie? perhaps she can help you with your debts or Maybe NOT!

How can relatives help in time of  debt?

To start off with you may not want them to know you have a problem, but if they do they may well see you as some form of idiot for letting this happen. More so if they are well off and solvent and you are not.

Family and for that matter close friends can be a source of guidance, someone to talk it through with and help you understand the options. One problem with being in debt is you do not always see the problem yourself in real terms, you see only gloom, and no real "way out".

How close you are to others who can help rules how likely you are in asking them for advice and perhaps direct financial aid.

Asking friends and relatives for money to fund debts is a NO NO, you could be ruining a great relationship if you fail to repay them. If on the other hand you can work out a sound plan to show you want to get on top of the debt issue you may well be able to "sell yourself" and can convince them backing you is a sound idea.

Asking relatives and friends for advice is one thing, asking for money is an entire new ball game and dangerous ground.

If they offer - refuse - tell them how worried you are about letting them down - negatives phrases spring to me mind " who would want to back a loser like me". They may persist with the offer, even then you should see the offer as a positive step, but not one which you should accept with thought and discussion of both sides.

• How much is being offered or do you need?

• How will you repay - lump sum, or instalments?

• When will you pay?

• What is their financial status? a pensioner or successful businessman?

• Can you readjust your request to a lower amount to lessen the risk?

• Can you consider taking LESS than they offer?

• How will you pay - where is the money coming from? (I'll get a job, I'll do over time etc sounds a bit vague although well meaning)

Ask yourself if the situation was reversed would you lend THEM money to get out of a debt problem? - Try and see their viewpoint from the OTHER SIDE.

Using relationships to help solve a debt problem is tricky ground and needs to be well thought out - should I? could I, dare I? what will they say? What if they refuse? What do you think they will say or ask?

Friends and close relatives are potentially strong allies in time of debt crisis, and can become part of YOUR TEAM if you let them, use their advice, sound ideas of them, but thread carefully about asking for actual financial help. Even if offered make sure the terms suit you both, enter a deal 100% with everyone's eyes open to the risks.