Please Help - I'm worried about the parents-in-law-to-be

Molanole

We found out today that they owe £20,000 on credit cards. All we know is that they're considering equity release and are having a meeting with their bank on Monday to talk about it.

I'm so worried that they will get the hard sell and that it might not be the right decision for them. There's no inheritance chasing going on here. I just don't want them to be ripped off by the bank and want them to have all the options to hand so they can make an informed, unbiased decision.

They won't tell us any more other than they're struggling to afford the credit card bills, can't pay for their utilities and council tax. They've not got many years of their mortgage left but their income is diminishing and they're both close to retirement.

Now, I know what they should be doing but they are very proud people, deeply ashamed of their situation and do not want to sit down with us so that I can work out a proper budget and look at ways to shift that debt onto a lower interest rate. At best, I'm going to check that they're claiming all they are entitled to but until they want my help there's not a lot I can do. I even admitted to them how much debt I used to be in so that they don't have to feel to ashamed but they are old school, you know, stick with the same suppliers, never move banks, all debt is bad. They even still pay quarterly rental for their phone through BT. That's how long ago it was that they really looked at their outgoings.

Not sure what advice I'm looking for here really. We're a long way away from an SOA stage. They won't tell us what credit cards their debt is on and I certainly don't know the APRs (but I bet it's astronomical).

Anyone got any ideas on what I can do to help? Anyone know much about equity release cos I certainly don’t.

Thanks guys.

Mola x

Merlot

Equity release from my little knowledge is not the way forward. They need to open up, and they should avoid using the bank, the banks are there for profit and they will be seen as profitable.

Merlot

http://news.bbc.co.uk/1/hi/business/3040663.stm

Read this, its from the BBC news website on equity release.

it may help.

Merlot.x.

belfastgirl23

They might not be willing to talk to you but would they be persuadable to talking to CCCS? If you sell it to them as free advice then you might be able to make an impact?

Sometimes people of that generation find it much easier to talk to strangers than family...

*MF*

Link to the Financial Services Authority - and Equity Release:

http://www.moneymadeclear.fsa.gov.uk/pdfs/equity_release.pdf

Worth printing off as it's in .pdf format - and giving to them????

From memory there are also posts in the Life Assurance section about this subject - and once/if maybe you know a bit more - it might be worth posting a query in that section just to have some specific IFA input on the subject.

ZTD

They do know they have to pay it back though don't they?

"Equity release...it's like your hard earned cash escaping into someone elses' pocket. But with a fluffier name."

Molanole

They do Zed but I don't think thay they've sat down and actually worked the figures out. Some of the calculations I've seen as I've been looking around are really really scary. Some look worse than a secured loan option but clearly I'd like to help them avoid both of those scenarios

RAS

Hi

If they belong to that school, I bet a pound to a penny that they have various PPI insurances that are useless and could be reclaimed.