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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:

MrsMoastyToasty · 01/02/2018 23:21

If it's National Debtline (rather than any other organisation by a similar name) then they are a non fee charging organisation who will advise him on all his options.

Original poster

BrightBurn · 01/02/2018 23:22

Thank you all so much. Will call step change tomorrow and see what they can do to help. What information does he need to gather?

OP posts:

Original poster

BrightBurn · 01/02/2018 23:44

Thank you all x

OP posts:

Girlfrommars77 · 02/02/2018 01:09

Re: StepChange - initially he will need to do a draft budget of his incoming and outgoing money (not inc debt) to assess what he can afford to pay - even if £1 to each per month. He will then need the account numbers of each of his loans. PM me if you want more support OP.

And in my experience pay day lenders do give a holding period and now - thankfully - have rules they need to abide by. If he informs them he is in debt, can’t pay and is in touch with a reputable organisation ie StepChange then they will freeze the accounts until your brother has contacted StepChange and StepChange has been in touch with them to give a payment programme. It is doable.

Girlfrommars77 · 02/02/2018 01:10

When I say freeze - I mean won’t take payments and won’t charge interest.

ilovesooty · 02/02/2018 01:17

When I used Stepchange I had to close my bank account and open one unconnected to my debts.

EveryoneTalkAboutPopMusic · 02/02/2018 01:35

Agree that there is no “black mark” on the address so please tell him not to worry about that.

It may be worth paying the fee to the Registry Trust to see if he already has any CCJs as this may help him decide what to do although if he’s going through the charities, they will probably get a copy of his credit file anyway.

If he did want to go for bankruptcy it’s a Debt Relief Order (DRO) that sounds more appropriate. It will stay on his credit file for 6 years but if he’s already got CCJs, that’s not much of an issue anyway.

Battleax · 02/02/2018 01:46

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

No it won't. Credit files are tagged to people, not addresses.

Bankruptcy, DRO, IVA, DMP and even the bad debt he's already in are all negative marks on a credit file.

So too late to worry about his file and no need to worry about his Mum's.

Original poster

BrightBurn · 02/02/2018 07:12

Thank you all so much. Could I phone on his behalf? He's suffering from depression and anxiety and struggles to talk to people.

OP posts:

rabbit12345 · 02/02/2018 08:32

Yes you can phone on his behalf although you will probably need him with you to give formal authorisation to discuss his debts with a third party. If they set anything up then will send him paperwork to sign.

Fill in the online forms on stepchange. It gives you a reference number and means that you will not be repeating anything over the phone.

Girlfrommars77 · 02/02/2018 08:36

Start by calling Step Change and see what they say about speaking on his behalf. Perhaps once you’ve dialled and had the initial chat you could pass the phone to him. Do call the loan companies so they freeze the accounts. If he is sitting next to you and can give passwords and any ID info then perhaps you could do it. It will help him feel better to start the process (I don’t say this lightly).

If his current bank account is also a debt ie an overdraft then this will need to be included on his debt management plan so he would need to open a new bank account. This is straight forward and can be done online. I recommend TSB.

EveryoneTalkAboutPopMusic · 02/02/2018 12:44

Barclays will also give bank accounts to people who are bankrupt or have a DRO or DMP.

If he’s depressed, can you get him to see a GP? Maybe make an appointment for him and go with him?

BarbaraofSevillle · 02/02/2018 13:14

If he has no reliable income and no assets, a Debt Relief Order is likely to be the most appropriate solution but he should get advice from one of the organisations mentioned above. He should also declare all debts including overdrafts etc.

Hopefully as well as cancelling the interest and writing off some or all of the debt, he will not be able to borrow money from payday loans or anywhere else for six years, which will stop him getting into a mess again in the short/medium term so allow him to concentrate on getting well and hopefully getting back into work.

Battleax · 02/02/2018 14:34

Barclays will also give bank accounts to people who are bankrupt or have a DRO or DMP.

As will virgin now, and they pay interest on the balance.

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