Help for OAP Mum with Debt problem

Rocket_Dog_2

My Dad sadly passed away in may of this year. Been trying to sort through things for my Mum as she is now on a basic state pension plus £33 a week pension credit. Have to my horror unearthed the fact that she has just under £10k in debt (credit card x 2, a store card and a small loan with the Halifax). one of the credit cards has not been used since Jan 2006 but she has just carried on paying £110 a month so as not to default ! Bottom line is there is no way she can keep up these repayments, she will just be living off of credit and growing the problem. Spoke with the CAB who suggested bankruptcy ....she will never go for that ! So not sure what to try next so would appreciate any advice. MBNA said to look at Payplan and CCCS. Thanks

BeautyandtheBeast_3

No idea where to begin just wanted to give you both a virtual hug. And to say the pension amount is miserable!

Rocket_Dog_2

Thanks - hug received and welcomed ! :-) I want to take the situation away from my Mum who to be honest just doesn't understand how much of a pickle she has got herself in to. She turns 80 in November and is just not up to dealing with this at all. Extra Euromillions for me tonight !!

BeautyandtheBeast_3

You are a very kind son/daughter who has made a lump appear in my throat. xxxx

GeorgeUK

You need to get a clear picture of all the income and outgoing your mother has. I suggest you help her fill in a statement of affairs and we'll see exactly where she stands. There may be ways to get the balance reduced by paying less interest or getting a better price for utilities, but we really need to know what's happening.
http://www.makesenseofcards.com/soacalc.html

Also, are any of these cards she is paying off soley in your fathers name? If so, she is not liable for his debts - the money would need to come from his estate and if there is not any, then they would be written off. Make sure she knows who's debts these are.

Sorry for your loss.

Rocket_Dog_2

Have already done all the sums and she has less coming in than she does going out. She is £400 a month worse off without my Dad's pension so no way she can afford the repayments. Sadly nothing was solely in my Dad's name.

dancingfairy

Just a couple of thoughts:
1) make sure she is getting everything she is entitled to.
2) if she can't pay, she can't pay and she will either have to come to some sort of arrangement with them - which will go on and on or go bankrupt, my only other suggestion is to try and make some sort of full and final settlement offer if funds can be found. Trouble is you don't want her to default and have to deal with debt collectors etc.
3) Is there any money due to her that she can use to earn an income and/or make full and final settlements?
4) will she consider downsizing to make living costs cheaper - ie fuel/council tax/rent etc and free up some money that way?
5) does she have anything to sell? any antiques or anything?
6) you don't say how old she is - is it possible for her to get a job at all? in a supermarket or something? obviously I don't know if this is practical or not?
7) any unfair bank charges to reclaim?

What is her take on the situation? what is her plan? presuming she has a plan and can comprehend her situation?
df

sleepless_saver

Does she own her own home, or is it rented?

ClootiesMum

Hi there,

Firstly, I'm sorry to hear about your Dad.

I know it's not what your Mum would want but can you have her write a letter to all the companies advising she is giving you authority to deal on your behalf and then you can have the mail sent to your house.

That way if she can go to CAB or somewhere for help, they may suggest that she pays a minimal payment each month to the companies until her circumstances change but if any of the companies send out threatening letters or default notices, you can intercept them and deal with them for her.

It's just you do sound quite switched on and your Mum, at 80, might panic if any nasty mail came to her - it's often a generation thing to do with the stigma of debt.

Not ideal, I know, but it might give you both a bit of breathing space under the circumstances.

CM

Rocket_Dog_2

Just a couple of thoughts:
1) make sure she is getting everything she is entitled to.
She had a home visit not long after my Dad passed away from the Dept of Work and Pensions and they went through benefits entitlements so think she is getting what she should (as meagre as it seems to me at times).
2) if she can't pay, she can't pay and she will either have to come to some sort of arrangement with them - which will go on and on or go bankrupt, my only other suggestion is to try and make some sort of full and final settlement offer if funds can be found. Trouble is you don't want her to default and have to deal with debt collectors etc.
My partner has been dealing with one of the Credit Card companies and they are wanting 45% of the balance in F&F settlement - money she just doesn't have.
3) Is there any money due to her that she can use to earn an income and/or make full and final settlements?
No - None at all
4) will she consider downsizing to make living costs cheaper - ie fuel/council tax/rent etc and free up some money that way?
She lives in a one bedroom flat so not much scope there
5) does she have anything to sell? any antiques or anything?
Nothing that I know of
6) you don't say how old she is - is it possible for her to get a job at all? in a supermarket or something? obviously I don't know if this is practical or not?
She is 79 - will be 80 in November
7) any unfair bank charges to reclaim?
Not sure


What is her take on the situation? what is her plan? presuming she has a plan and can comprehend her situation?
df

She is very upset by the whole thing and just doesn't understand Finance.....she doesn't see that drawing money from your Barclaycard to pay for general cost of living is a big no-no. It's just a nightmare situation.

BeautyandtheBeast_3

Poor thing - Can you help out in anyway?