Having taken over 17,000 calls to my Bounce Back Loan helpline over the last few years, with that number rising every single day of the week, I am upset to report that around 38% of those calling have admitted to experiencing suicidal thoughts as a result of their financial struggles.
These findings come as businesses across the UK continue to grapple with repaying loans they took out during the COVID-19 pandemic, intended to keep them afloat.
For many, however, the repayment burden has become overwhelming, leaving them in dire financial and emotional distressing situations.
The Bounce Back Loan Scheme (BBLS), introduced in 2020 to support small businesses affected by the pandemic, provided loans of up to £50,000 with no repayments required in the first 12 months.
However, with the economic aftermath of the pandemic dragging on and other business struggles arising, such as the cost of living crisis, even more business owners are now unable to keep up with their BBL repayments.
The pressure to repay has led to an alarming rise in mental health crises, with a significant number of borrowers feeling trapped and hopeless.
The official Bounce Back Loan Arrears and Defaults figures that I report on each Quarter reveal that there is no downturn in the number of businesses getting into arrears and defaulting on their BBLs, even now, almost 5 years after that scheme was launched which fired out over £46 billion in loans.
Helpline Data Raises Mental Health Concerns
That upsetting suicidal thoughts data, willingly volunteered from callers to my helpline dedicated to supporting individuals struggling with their BBL repayments, has painted a concerning picture.
Almost two in five callers have confessed to feeling suicidal, highlighting the severe emotional toll that financial distress is having on UK entrepreneurs and small business owners.
Those involved in the BBL scheme that I have spoken to have voiced their concerns and told me they too have seen similar figures, and are urging anyone in such a situation to seek help from their Lender and reminding them that there are solutions to ease both financial pressure and emotional turmoil.
In response to this alarming trend, my helpline has not only been providing guidance but I have also been helping individuals set up a clear plan and a path forward for them.
Coping with Financial Stress and Suicidal Thoughts
For anyone struggling under the weight of their Bounce Back Loan or any other financial strain, it’s crucial to know that help is available. Here are some practical steps you can take if you’re feeling overwhelmed:
Speak to Someone
The Samaritans: If you’re experiencing suicidal thoughts, speak to a loved one, a close friend, or a professional. The Samaritans (116 123) offer confidential emotional support 24/7.
Mind: Financial difficulties can fuel anxiety and depression. Charities such as Mind (0300 123 3393) provide support for those experiencing mental health issues related to debt.
My BBL Helpline: I am also available from 4am to 4pm each day and many callers tell me its like a huge weight being lifted off their shoulders once they open up and discuss their inability to repay their BBL and become aware of the options available moving forward, even if that is them not repaying anything further on their Bounce Back Loan.
Don’t bottle up feelings, opening up can ease some of the emotional pressure you’re under and allow others to help.
Contact Your Lender
Negotiate repayment terms: Some, but not many lenders are open to adjusting repayment plans. The sooner you contact them, the better your chances of getting relief. Ask about options like extending your loan term, reducing monthly payments, or interest-only repayment periods.
You will be offered any of the PAYG options that you may not yet have made use of, but most people have already used them all up or cannot afford the extra interest they will end up paying if making use of the PAYG options, and I can guarantee Lenders will want you to default if you are unable to make payments moving forward.
Breathing Space: Most Lenders though will give those in distress an instant 30 day or longer breathing space, and during that time they will not take any payments or contact you, they will also give you some charitable organisations to call should you be up to doing so, based on your personal vulnerabilities.
There is no shame in admitting you are feeling highly vulnerable to your Lender, as every single one of them will be able to, and are under orders to, help you in any way they can.
Default on Your BBL: If you are in deep distress mentally and/or financially, all Lenders will tell you to default as that then opens up a clear pathway for you, and one that is not as scary as you may initially believe it to be.
Give me a bell if you want to discuss what can and will be offered to you and for details of the BBL Default Pathway.
No one should face financial struggles alone, and experiencing suicidal thoughts over debt is a sign that help is needed.
There are many resources available to assist with both financial and mental health challenges.
The Bounce Back Loan was designed to help businesses survive difficult times, but if it has become a source of unbearable stress, reaching out for help is the most important step you can take.
Call me anytime between 4am and 4pm, 7 days a week.
A fair number of callers to my helpline admit they have put off calling, please do not do so as the sooner you call the sooner you can turn a corner, and if need be, finally Bounce Back but without the BBL draining your mental health and financial resources each month.
The best part of this weird little “job” that I have given myself, is hearing back from people (often weeks, months or years after they initially called called my helpline), who had to default on their BBL and hearing how they have now got their lives and often businesses back on track.
