I'm in desperate need of advice from someone who knows about these things.
Here's my problem.
Son 20yrs old takes out a personal loan of $5000 when he turned 18.
He has since left New Zealand owing $5600 on that loan because of non payment and penalty interest.
The bank have handed it over to a debt collecting agency.
He received notification from them that if this amount isn't paid in 7 days proceedings will be taken against him.
He has no assets so I dont know what they can do to get their money back.
My dilemma is as his parent should I stump up and pay off the loan for him, I've been strict with myself not to intervene because he seems to think that if he ignores a problem it will go away I have talked to him about it time and time again to no avail.
If I dont make payment for him how seriously will this affect his future?
Once the debt has been handed to debt collectors can he arrange with them to pay it off weekly or has he used up all his chances of doing that?
I want my son to grow up and be responsible for his actions but I dont want this to severely affect his life.
Please take the time to give me some advice.
Here's my problem.
Son 20yrs old takes out a personal loan of $5000 when he turned 18.
He has since left New Zealand owing $5600 on that loan because of non payment and penalty interest.
The bank have handed it over to a debt collecting agency.
He received notification from them that if this amount isn't paid in 7 days proceedings will be taken against him.
He has no assets so I dont know what they can do to get their money back.
My dilemma is as his parent should I stump up and pay off the loan for him, I've been strict with myself not to intervene because he seems to think that if he ignores a problem it will go away I have talked to him about it time and time again to no avail.
If I dont make payment for him how seriously will this affect his future?
Once the debt has been handed to debt collectors can he arrange with them to pay it off weekly or has he used up all his chances of doing that?
I want my son to grow up and be responsible for his actions but I dont want this to severely affect his life.
Please take the time to give me some advice.
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