Help getting out of debt.! Please read.

[Compleks]

Please help me.!

My brother is basically my financial polar opposite. I keep out of his business for the most part, but it has come up recently that he is in quite a bit of debt.
Credit cards, personal loans, never paid tax, parking fines etc...

I don't know all the details or just how deep he is, but I assume it's not a good situation. He basically refuses to acknowledge it, and just throws out letters from the bank. To make it worse, he hasn't been working lately and his next job wont start for a few more months (he is a chippy and sub contractor).

I'm genuinely concerned that he is going to end up in serious trouble if he doesn't sort his ***** out asap.

I don't know how to help him and I'm not sure he would listen if I did.
I've seen ads on tv for financial companies specializing in debt relief. I was wondering if anyone here would recommend one of these services?

I'm open to all suggestions. I think he's finally realizing that he can't just ignore this anymore, and I think he will go and seek advice if I can point him in the right direction.

He's drowning and doesn't have a clue how to swim.
Please help me get him back on track.

 

[ok180]

Tell him to register on here and we'll give him a good ole rogering.

 

[Terry_w]

tell him to read Stephens v Pattison & Anor and Pattison v Stephens [2014] FCCA 62.

It seems Mr Stephens had a car accident, was served with legal documents, but ignored them thinking that his insurer would pay the debt of $7,701.72.

this didn?t happen and he was bankrupted. The trustee in bankruptcy was appointed and had undertaken work already when he was contacted by Mr Stephens ? the bills were about $59,000 by this stage.

Small bills turn into big bills. He probably lost his house over this.

For a summary of this case see https://www.afsa.gov.au/practitione...son-anor-and-pattison-v-stephens-2014-fcca-62

 

[TMNT]

The first step to recovery I'd admitting

Does he actually SERIOUSLY want to get out or is he like "oh I'll just pay it off in instalments for the next forty years, which kinda sux"?

 

[VYBerlinaV8]

Ask him if he would like to talk about it and tell him you can help. If he says no, then let it go. You can't force him, maybe a big scare is what it will take to kick his bum into gear.

 

[Frito]

Hey Compleks I feel for ya, have a younger brother exact same- boom bust party boy tradie who is a financial disaster and its taken us years to unscramble his finances- the longer your bro leaves it the worse it will get- banks, ATO, credit providers etc never, never, ever go away/forget. Although it can be tough to get people to seek help even if its in their own interests maybe suggest just getting some basic unbiased advice- do NOT use one of those debt agency late night infomercial type crowds if you can help it tho- try something like http://salvos.org.au/need-help/financial-assistance/financial-counselling/ -its free and they wont try and get him on the hook for a consolidation loan or other products. Good luck!

 

[Liberator]

I would suggest checking out the MoneySmart website

https://www.moneysmart.gov.au/managing-your-money/managing-debts/financial-counselling

Especially the section "Debt consolidation vs Financial counselling"

Also, without wanting to be negative about it, I reckon it's going to be hard for both of you - good luck with navigating the waters when it comes to family & money attitudes!!

 

[tobe]

wait until he hits rock bottom then refer him to a financial councillor.

Until then, tough love.

 

[Compleks]

Thanks so much for all the replies, you guys are great.

I'm all for tough love, but I think he might be ready to actually help himself.

I always knew he wasn't very smart financially, but I only found out how serious it could be after he mentioned something to our Mum. She told me and asked if I could try and help him.

For him to even mention it I assume it must be getting out of hand, and he probably just doesn't know what to do.

I will try and point him in the right direction and get him some professional advice. I can't just sit back and do nothing. Hopefully he acts now before hitting rock bottom. He's still young, so time is on his side if he makes good decisions now.

Thanks again, I genuinely appreciate the help. I will try and find him a good financial counselor and set up a meeting.

 

[tobe]

Many Surgeons choose not to operate on their family members. They dont want the knife to slip.

Refer your family to someone else. Dont become their financial advisor. Above all, dont physically look after their money, or obviously lend them any more money.

 

[Macca]

You may find that he won't "fess up" just how bad it is to a family member, as suggested by others, charities can often help. Here is a link, worth reading and maybe pass it on to him

https://www.lifeline.org.au/Get-Help/Facts---Information/Financial-Problems/Financial-Problems

 

[VYBerlinaV8]

Many Surgeons choose not to operate on their family members. They dont want the knife to slip.

Refer your family to someone else. Dont become their financial advisor. Above all, dont physically look after their money, or obviously lend them any more money.

This is very good advice.

 

[BayView]

Thanks so much for all the replies, you guys are great.

I'm all for tough love, but I think he might be ready to actually help himself.

I always knew he wasn't very smart financially, but I only found out how serious it could be after he mentioned something to our Mum. She told me and asked if I could try and help him.

For him to even mention it I assume it must be getting out of hand, and he probably just doesn't know what to do.

I will try and point him in the right direction and get him some professional advice. I can't just sit back and do nothing. Hopefully he acts now before hitting rock bottom. He's still young, so time is on his side if he makes good decisions now.

Thanks again, I genuinely appreciate the help. I will try and find him a good financial counselor and set up a meeting.

Here's an easy test; if he is so ready, ask him to give you his CC so you can cut it up in front of him.

No more CC purchases of any kind until the bill is paid in full.

This of course is only the ice-berg tip, but you have to start with one step.

He can call the relevant authority regarding the parking/speeding fines and arrange a payment plan, and any other creditors as well....even the ATO.

They are all approachable - I know this from experience.

You must have the right approach with them though; "cap in hand" is the only way, and a very apologetic tone helps.

There may be interest involved to be paid, but that's the price of the situation.

Then, refer him to the debt reduction plan in John Burley's book; "The Seven Money Steps."

There are loads of debt reduction companies around, but I reckon he can find the answers here on SS.

It amazes me how folks who are broke still insist on getting speeding fines and/or parking fines too.

Stop speeding, stop parking illegally - YOU CANNOT AFFORD IT.

 

[The Y-man]

It amazes me how folks who are broke still insist on getting speeding fines and/or parking fines too.

Stop speeding, stop parking illegally - YOU CANNOT AFFORD IT.

Absolutely agree!

The Y-man

 

[Melbournian]

tell him to read Stephens v Pattison & Anor and Pattison v Stephens [2014] FCCA 62.

It seems Mr Stephens had a car accident, was served with legal documents, but ignored them thinking that his insurer would pay the debt of $7,701.72.

this didn?t happen and he was bankrupted. The trustee in bankruptcy was appointed and had undertaken work already when he was contacted by Mr Stephens ? the bills were about $59,000 by this stage.

Small bills turn into big bills. He probably lost his house over this.

For a summary of this case see https://www.afsa.gov.au/practitione...son-anor-and-pattison-v-stephens-2014-fcca-62

That is a pretty hardcore case - i would have just claimed insurance.
Also - it was an organization CFA or some utility company - it was obvious they would go with this.

 

[Terry_w]

There was also a person from the forum who was bankrupted over unpaid strata bills. She refused to pay because of some dispute. The strata company got judgment against her and then served a bankruptcy notice on her. she had the unit sold from underneath her to pay the bill and the high fees of the trustee's appointment and work.

Small bills become big problems.

 

[Compleks]

Stop speeding, stop parking illegally - YOU CANNOT AFFORD IT.

I just got done for not wearing a seatbelt. There goes nearly $300.!

I appreciate all the responses.
I'm not going to get myself too involved, but at the same time I won't sit back and do nothing. I'll forward him the links that you guys have shared and encourage him to meet with a financial counselor.

Many thanks to all of you.

 

[LoneWolf]

Can an individual file for bankruptcy?

 

[TMNT]

There was also a person from the forum who was bankrupted over unpaid strata bills. She refused to pay because of some dispute. The strata company got judgment against her and then served a bankruptcy notice on her. she had the unit sold from underneath her to pay the bill and the high fees of the trustee's appointment and work.

Small bills become big problems.

wow! that would **** me off big time! being bankrupted and unit sold off for a loss over a few thousand dollar strata bill

 

[nhg]

wait until he hits rock bottom then refer him to a financial councillor.

Until then, tough love.

Have an aunt who just blew her inheritance in a year gambling. An uncle had been investing it and growing it for her for a few decades. The casino was nice enough to give her a certificate of appreciation.

Family chipped in to provide some relief but found out she would gamble it the same afternoon.

They stopped giving her funds and she has gone MIA. Possibly sleeping out of the back of her car (assuming she still has a car). Her daughter is living elsewhere now.

As above, you can't help someone unless they want to help themselves. Sometimes they really have to hit rock bottom before they can admit they need help.