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

fc123

StevieJ wrote: »

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

It depends. If the MEW was over a short period, say a few years left on mortage, may be a good solution, but if it means re-mortaging over a long time, it would cost loads in the long run. Plus she's 60 too.

fc123

vivatifosi wrote: »

Hey FC, in the spirit of the people of Iceland, how about Frocking frokk?.

Another possibility.......thanks

PasturesNew

fc123 wrote: »

any bright ideas for a sparkly new user name much appreciated.

No bright ideas, I'm what they call "non-creative garbage"

However, since everybody's gone down the frocks route... frockyhorror?

Another ragtrade one would be: TheNewBlack

treliac

PasturesNew wrote: »

No bright ideas, I'm what they call "non-creative garbage"

Hey, hang on there. Not true. Your wit keeps us highly entertained.

lostinrates

Oh I like TheNewBlack.

Non creative PN? You write creatively!

StevieJ

fc123 wrote: »

Another possibility.......thanks

I think that is great, could even make a good business name

lily76

well, don't be too sad or worried. 14K is not that bad, believe me, i have seen many many in even worse situation. My suggestion is to ask the bank to stop all the charges and freeze interest. You can have that done by a debt management company and when everything is settled and banks agree reduced payment and frozen interest you can cancel it with the debt management company and continue what has been agreed. Normally banks can give a kind of discount if repayed in full. Good luck.

itsnever2lateisit?

Unashamed bump

Hey Mumsgirl, there is some advise on your other thread that I disagree with. Please do not go down the route of using a Debt Management Company. There are plenty of organisations that do the same service for FREE, such as CAB

A Debt Management Co will take a substantial cut for themselves which means it will take you mum longer to reach the end.

From what you have said you Mum has not yet reached the point of defaulting on payment, instead choosing to work day and night to service it (I applaud that attitude myself) I am sure pride will stop her from defaulting from what you have said, so it is a matter of 'taming this tiger' and steadilly bringing the debt down.

May I ask what the interest rate is on this card?

itsnever2lateisit?

lily76 wrote: »

well, don't be too sad or worried. 14K is not that bad, believe me, i have seen many many in even worse situation. My suggestion is to ask the bank to stop all the charges and freeze interest. You can have that done by a debt management company and when everything is settled and banks agree reduced payment and frozen interest you can cancel it with the debt management company and continue what has been agreed. Normally banks can give a kind of discount if repayed in full. Good luck.

Sorry Lily I disagree, Debt Management Company is not a good idea, if this route is chosen best to use one of the Charities who will do the same for Free, Martin refers to them about this site

fermi

itsnever2lateisit? wrote: »

Sorry Lily I disagree, Debt Management Company is not a good idea, if this route is chosen best to use one of the Charities who will do the same for Free, Martin refers to them about this site

A fee charging DMC is certainly a bad idea.

But a free one like CCCS will help you go through most of the options available. Also helps sometimes to have a chat with a real advisor over the phone or face to face (as with CAB).

Link to Martin's article: Debt Problems: Where to start, what to do, where to get help

Plenty of good advice in that and on DFW.

Including..............

The right people to go to...

The aim is to find non-profit debt counselling help, in other words a one-on-one session with someone paid to help you, not to make money out of you. Be careful not to confuse this with ‘free help’: many commercial companies say they’re free as you’re not charged directly, but you’ll still pay somehow.

The places I'd suggest are:

• Consumer Credit Counselling Service: Full debt help service. Link: CCCS Tel: 0800 138 1111
• National Debtline: Full debt help service. Link: National Debtline Tel: 0808 808 4000
• Citizens Advice Bureau: Full debt and consumer advice service. Link: Citizens Advice or visit your local CAB centre (find nearest)
• Christians Against Poverty: Debt counselling agency, which specialises in helping those who are emotionally struggling too. The religious focus is why they do it, not how they do it. Link: Christians Against Poverty or call 01274 760720.
• For evictions/repossessions: If you’re in danger of this it’s important to get legal advice asap. The Housing Duty Scheme, by Community Legal Advice or call 0845 345 4345, gives free advice at around 100 courts across England and Wales.
• Local agencies: There may be a local debt help agency in your area, if so check it is non-profit or a charity, before signing up.

What they do to help

These counsellors use a variety of techniques. It could be simply negotiating with creditors to freeze your interest, you may be put on a debt management plan, where they negotiate with your creditors. You may be pointed toward an IVA (Individual Voluntary Arrangement) or even bankruptcy (not as scary as it sounds).

They will certainly show you how to prioritise the most important debts to enable you to keep food on the table and a roof over your head.

I know many people are nervous about going, and imagine it'll be like being in the headteacher's office at school, but...

They're not judgmental, they're not there to tell you off, just to help you sort out the problem. Talking to them may help you sleep at night.

Unfortunately they can be oversubscribed. If it takes time to get an appointment with them, use the info on their websites to start to plan.

The wrong people to go to...

Avoid any debt help or loan consolidation companies that advertise on the telly or in some newspapers. Their job is to make money out of you, plain and simple. While in the short term their plans will make your payments lower, in the long run it'll cost you dear. Avoid them. Don't touch them. Don’t go near them.

I think this post from the Forum explains it better than I ever can:

"We, my wife and I, are on a seven-year plan with CCCS" (the Consumer Credit Counselling Service, one of my suggested agencies – Martin) "having recently changed from a commercial debt management company after hearing Martin on Radio 2's Jeremy Vine show. The simple action of swapping to the CCCS has shaved over two years off the length of our plan as the money we were paying the management company now goes to our creditors instead! Of course, that also means a financial saving of nearly eight grand over the term of the original plans 10 year period."

This includes IVA companies who advertise about “a little known government loophole”. While it sounds good, it’s only for a few people. If it is for you the debt counselling agencies should suggest it.