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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

National Debt Advice

39 replies

BrightBurn · 01/02/2018 22:13

My brother who is just 23 is in debt. Payday loans of 6k. He's on the brink of suicide. I'm trying to help.

Waiting for a call from national debt advice tomorrow. Can they help? What do they do?

Please any advice. I'm so desperate. Please help.

OP posts:

maddiemookins16mum · 01/02/2018 22:16

Please call Christians Against Poverty tomorrow. They are a debt relief charity who do amazing work. They saved my life.

TalkinPeace · 01/02/2018 22:18

One of the best is Stepchange
they have the power to stop creditors hassling people
and give you the time to sort your head out
CAB are great as well

rabbit12345 · 01/02/2018 22:21

I second stepchange. Go on their website now, they have a fantastic tool which you type your details into and then it gives you the solution of what they would advise on the phone.

Stepchange can set up a debt management plan and will deal with the creditors.

rabbit12345 · 01/02/2018 22:22

m.stepchange.org/debt-remedy

Tool here

Original poster

BrightBurn · 01/02/2018 22:23

He can't cope with having multiple deadlines. Several creditors, different days. He needs put all his debt in one place. Making one payment on one day a month. Do they help?

OP posts:

rabbit12345 · 01/02/2018 22:24

Stepchange can organise all of this for him. He would pay them one payment a month and they would distribute it for him.

rabbit12345 · 01/02/2018 22:26

One thing I should mention is as they are payday loans they may not be enforceable.

Check out the consumer rights and MSE, basically if they have him loans to the extent of £6000 then they were negligent in providing loans that could not be affordable.

ObiJuanKenobi · 01/02/2018 22:27

I have a dear friend in a similar situation. Be strong and he is very lucky to have you looking out for him.

rabbit12345 · 01/02/2018 22:28

Link for affordability complaint here

www.financial-ombudsman.org.uk/publications/technical_notes/payday-lending-case-studies.html

Original poster

BrightBurn · 01/02/2018 22:31

Thank you so much. He owes about 7 different pay day loan companies.

OP posts:

rabbit12345 · 01/02/2018 22:41

One more link for you with sample letters that you can send to each company and some great advice on what to do in the meantime

debtcamel.co.uk/payday-loan-refunds/

rabbit12345 · 01/02/2018 22:46

Tell you brother this:

cancel any Direct Debits, Standing Orders and CPAs that make payments to your creditors.
talk to StepChange – let’s assume they think a DMP is a suitable option.
StepChange will tell your creditors about your DMP, you don’t have to.
start thinking about affordability complaints to the payday lenders. This doesn’t have to be immediate – you may prefer to wait until your DMP has “settled down” for a few months.

FWIW I have just been made bankrupt, I am not proud of this (failed business) but it has given me a fresh start. I understand fully the feelings of desperation that he is going through right now but the hardest part is picking up the phone. I promise you that.

jellybeanteaparty · 01/02/2018 22:46

Another vote for step change. They really do offer step by step help.

Original poster

BrightBurn · 01/02/2018 22:49

It's a nightmare. He doesn't want bankruptcy as he still lives with his mum and it will be a black mark on her address. What's a DMP?

OP posts:

SingaSong12 · 01/02/2018 22:52

The most important thing is to make sure that the organisation is really offering free debt advice. Step change, citizens advice or a number of local organisations will do this. Some debt solutions to have fees/charges, however there are also organisations that can appear to be free but then refer to an organisation that charges to manage debt. A quick google of national debt advice brings up both the free and charging ones so get your brother to ask what charges there will be. For example PayPlan do not charge for helping with a debt management plan.

rabbit12345 · 01/02/2018 22:55

He won’t need to apply bankruptcy. It will likely be a dmp unless he has no income and then it would likely be a DRO. A DMP is a debt management plan. Often stepchange can negotiate to freeze interest and charges and then work out what he can afford and split that between the creditors until they are paid.

If he puts in a complaint, he could get the interest and charges he has already paid and was due to pay (this would reduce his debt greatly) it sounds complicated but is a relatively easy process and there are letter templates in the link I provided to do this when he is ready.

SingaSong12 · 01/02/2018 22:56

Op
If you want a bit of background about dent solutions try

m.stepchange.org/how-we-can-help-you/debt-solutions

www.citizensadvice.org.uk/debt-and-money/debt-solutions/

Original poster

BrightBurn · 01/02/2018 22:58

Thank you so much for your advice. He's been out of work for months. He has managed to get a temporary job for 8 weeks but nothing permanent.

OP posts:

rabbit12345 · 01/02/2018 23:03

There is no need for him to worry about living at home either. There is no such thing as a black mark on the address (it is the person) nor will he be financially linked to Mum (unless he shares a bank account with her) so tell him not to worry about that. So his finances will not affect Mums Credit viability.

Nightmanagerfan · 01/02/2018 23:03

Someone like CAP (Christians Against Poverty) or Stepchange will ask for details and then they will call all the debtors on your brother’s behalf so that he only has to speak to the case worker from the charity. They won’t judge and will be kind and straightforward. I really think they will be able to help - I know someone who manages a centre of one of the charities mentioned and he said that the debtors know that their case workers are well informed and know their rights so they are able to negotiate well for their clients. By the way it’s a free service. If you live near a centre you could even arrange to pop in, or of course it’s fine to do it on the phone.

Please do tell your brother that this is not insurmountable and he will be able to get out of it.

Girlfrommars77 · 01/02/2018 23:07

Step change will do exactly that as pp said. Set up a single monthly payment for whatever he can afford. He can start by calling each of the seven companies - I know it’s hard but you could sit with him - and he needs to tell them he is in financial difficulties and will be contacting Step Change. The pay day loan companies will then put a freeze on his accounts for 30 days to allow him to set up a debt management plan so that no further interest is taken in the meantime. They are used to this situation and will have dealt with many people doing the same. Also look at the debt management advice on the Martin Lewis money saving expert site.

If he has debts with banks, also call them and explain he is having mental health issues due to debt. All major banks have trained teams to assist and set up affordable plans.

It’s horrible and scary but it is a problem that can be solved. There is a way out and action that can be taken. I’m sorry your brother is going through this and glad he has your support

Girlfrommars77 · 01/02/2018 23:08

I meant - please tell your brother this is a problem that can be solved and there is action that can be taken to support him.

DeadMorose · 01/02/2018 23:12

If he has been borrowing money to pay out previous loan or has been rolling them over, they might be considered unaffordable and payday lenders might have to write them off and refund him all the charges and interest. Read here and here

If it helps him decide, I’ve managed to get £700 back just before Christmas and my DH just received a settlement offer for £1800+ today.
HTH

WTFIsThisVirus · 01/02/2018 23:14

Some of the advice on here is good, but if the payday loan companies have his current bank account information, they might try to take payments anyway. They're not exactly known for their morals. He might want to consider a new bank account.

maddiemookins16mum · 01/02/2018 23:18

And Christians Against Poverty also offer much needed emotional support, which can make a huge difference in such situations.

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