financial dificulty

[signify]

Hi All,
Just looking for some advise really. My brother called me up to say that he was really struggling with his debts. To cut a long story short i find out he's in around £15,000 of credit card and loan debt as well as other various debts including a HMRC debt and his left with very little money at the end of a month, he's got a baby on the way to so i just want to try and help him.

Where does he stand with asking his creditors to change payment dates/reduce minimum payments? would it acceptable to write to his creditors to ask for some help in the short term whilst he sorts his financial situation and as soon as he gets in a better position he can start to pay a bigger chunk of his debt to start o get it down. i'd be happy to help him contact the creditors he owes money to but if we write to them will they listen and be willing to help the situation without making it worse?

He has not defaulted on any of his debts but has started missing payments, even having to choose which ones he can afford to pay each month soon to be in a position where he will eventually default on some of his debts just because of the interest rates and the high minimum payments on each debt.

Any advise would be really appreciated

Signify

[Debt Camel]

Re: financial dificulty

He could do all the talking to his creditors himself (or you could help) but it's best if he gets a debt advisor to look at his whole situation. I suggest he calls National Debtline about his options https://www.nationaldebtline.org/EW/Pages/default.aspx.

Any form of debt solution is likely to involve getting defaults, but that can't be helped. If he doesn't have enough money to make the minimum payments, then he either has to default or borrow more / not pay some essential bills. But this "robbing Peter to pay Paul" can't go forever and means that he will have a worsening situation every month.

[signify]

Re: financial dificulty

I didn't think defaulting would be an option but i suppose if he can't even make the minimums its only a matter of time? But it best to write to the creditors to admit defeat, send a budgeting sheet and offer the most that can be afforded?

Thanks

[jaguarsuk]

Re: financial dificulty

As Debt Camel said, it's probably much better to have a debt adviser do it for him because they can ensure he's not offering more than he should/needs to offer.