My 60 year old mum owes 14k on credit - Help pls

Trollfever

If mum has any equity in a property, she will need lots of


<<<<<HUGS>>>>

fc123

mumsgirl wrote: »

There are various reasons for the debt, personal reasons, I just want to help her, she knows its her debt, takes responsibility for it, never moans about, never says she is worried, I have taken it upon myself to sort this out because I cant stand seeing my mum looking so exhausted all the time because of a debt she should never have been able to have access to. Ill get off my high horse now

It's the interest that is the killer. It can take a while writing letters, faffing about from call centre to call centre to sort it out but it is possible.

Only from my experience would I say not to let it get sold to a Debt Collection company....I don't know how long that takes...maybe 4 months of no payments?
After you miss one payment, it goes to a seperate collections dept. They will 'phone......but my son worked for one these one summer and was 18. Many of the staff talk from scripts, have targets to get payments etc....don't be fobbed off by them.....say circumstances have changed, you want to pay the debt down BUT request interest to be frozen. They will freeze for 6 months then renew every 6 mnths.

Request to submit an SOA and a good offer of, say £100pcm (if she can afford it) if interest is frozen.

treliac

mumsgirl wrote: »

We just found out OH's mum (not working mid 60's married with low income and mortage tho' small) has a card with a pretty big limit. Fortunately, she doesn't use it to the max....but would have had someone in the family needed help.

There are various reasons for the debt, personal reasons, I just want to help her, she knows its her debt, takes responsibility for it, never moans about, never says she is worried, I have taken it upon myself to sort this out because I cant stand seeing my mum looking so exhausted all the time because of a debt she should never have been able to have access to. Ill get off my high horse now[/quote]


Do you have a mortgage that you could drawdown on that might provide a cheaper vehicle for your mum to pay back on?

fc123

Trollfever wrote: »

If mum has any equity in a property, she will need lots of


<<<<<HUGS>>>>

?????????
Why? ....

lostinrates

fc123 wrote: »

?????????
Why? ....

because it stayed here.

Trollfever

fc123 wrote: »

?????????
Why? ....

If you have equity in a property, debt collection companies will chase you forever.

fc123

vix2000 wrote: »

What does 'interest frozen' entail, and does it go on your credit file, please?

Posting only from my own experience, once we wrote the letters and hassled for 0% and payment plans, it went as a default on our credit file.

That makes mainstream borrowing very difficult BUT doesn't stop Sub Prime borrowing.

However, once you have decide to pay down debt (and never have any again) it's not an issue.
For a mortgage, if you clear the debts, save for a few years, your file shouldn't affect a mortage application some years later.
Howver, my advice may be out of date post Credit Crunch.

We got £70k of card debt all onto 0% with payments ranging from £100 pcm to £200pcm on each. It took a lot of writing and 'phoning and I did take MBNA and Barclaycard to the ombudsman....and then they did a payment plan.......no probs.;)

StevieJ

If it was me I would do some mewing provide it didn't leave me close to negative equity

fc123

Just to add...avoid any Sub Prime borrowing ...ever.

fc123

Trollfever wrote: »

If you have equity in a property, debt collection companies will chase you forever.

I see what you mean.
That's why I said don't let it get in arrears so that it's sold to debt collection.

You do have to miss one payment to get it to collections and then you can start to negotiate with them. Often it depends on the person answering the 'phone.
If you got my son at the end of a shift and he had collected enough late payments by debit card that day, he would refer callers, refund charges etc.

One card took me 6 'phone calls to get a result.
2 ; I took to the ombudsman....result straight away then as you go through to the card customer complaints section staffed by very nice, helpful people who want to help you and know why you complained to the ombudsman.


MBNA kept on pushing a secured rip off loan and I just kept saying that we were advised not to borrow anything anymore.....not a lot they could do about it.....and the ombudsman didn't like that either......so 0% straight away.