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The Debt People, or a better alternative?

Hello,

A family friend (seriously!) has confided in me and is seeking my advice. Although he is gainfully employed, he is £26,000 in debt. He has no savings nor property to sell. He has asked me if The Debt People are a reputable company to deal with. I have never heard of them, so I can’t advise him. Their reviews look good, although reviews can sometimes be misleading. He is at his wits end, and would be grateful for some advice on the best way forward. Thank you.


Comments

  • RAS
    RAS Posts: 34,453 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 5 July 2023 pm31 5:12PM
    He should talk to Stepchange, National Debtline or CAB. All of whom offer free advice and long-term support if needed. Phone lines for the first two are open until 8pm and they offer on-line and webchat support.

    Make absolutely sure he uses the official websites, not some fake name. There are a lot of online and TV ads offering debt solutions who are primarily hunting for people who they can sign up for IVAs in exchange for the referrers fee, to companies who charge £6-9k for an IVA.

    IVAs are sometime useful for people owning a home or other high cost asset and have debts over £30k. 

    The Debt People are a dormant private limited company. 

    Be aware that Stepchange stopped doing DROs recently, so their debt solution calculator recently seems to have stopped offering that as a solution. It may be right for your friend, if he has no assets over £2k or similar savings. CAB are a bit over-run in consequence.

    And try to get him on here for one to one advice.

    Whatever, help him organise a new basic bank account with someone to whom he owes nothing, or Monzo/Starling and get his next pay-check paid there. Don't switch accounts as that also switches DDs automatically. Set up the ones he needs "manually".


    If you've have not made a mistake, you've made nothing
  • CliveOfIndia
    CliveOfIndia Posts: 2,192 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Step Change and National Debt Line are usually highly regarded on this forum, and Citizen's Advice can also be very helpful.  None of these 3 will charge anything for their services.
  • Thank you so much RAS and CliveOfIndia for your very helpful comments. They are much appreciated.
  • fatbelly
    fatbelly Posts: 22,143 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Yes - I would say if The Debt People is the answer, let's have a closer look at the question.

    Debt People is a trading style of Debt Advice Expert Limited. Address: Floor 3, Dale House, Tiviot Dale, Stockport, SK1 1TA. 

    Seems to share an address with

    Write My Debt Off


    https://www.fca.org.uk/news/warnings/write-my-debt




  • enthusiasticsaver
    enthusiasticsaver Posts: 15,908 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Well done @fatbelly for finding that out. 


    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • StepChange_Aidan
    StepChange_Aidan Posts: 267 Organisation Representative
    Fifth Anniversary 100 Posts Name Dropper
    edited 7 July 2023 am31 10:08AM
    RAS said:

    Be aware that Stepchange stopped doing DROs recently, so their debt solution calculator recently seems to have stopped offering that as a solution. It may be right for your friend, if he has no assets over £2k or similar savings. CAB are a bit over-run in consequence.

    Hi,

    Just want to clarify, although StepChange no longer offer DROs, our online tool will still suggest it as a option if you’re eligible. If you select it as your chosen solution, you’ll then receive further information about applying via an approved intermediary.

    Regards,

    Aidan
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