Friend in need

hatsepsovet

Hi there everyone,

A friend of mine is very stressed about the state of his financial affairs and he doesn't seem to know how to even start sorting it out. I was hoping one of you clever people could give him some advice. (He doesn't know I'm writing this thread but I'll ask him to read it once some advice has been posted). Anyway, here goes.

He owes about 45k. This includes mortgage - there are 3 more years of repayments left but he's 62 years old and would like to retire when he's 65.

He has some credit cards where the rest of the money is owed.

I was talking to him today and he came with an idea of equity release. He'd like to pay off the mortgage and the credit card debts and start with a clean slate. He wants to then save for next 3 years until he retires as he will only be getting a state pension and this would hardly cover his basic bills.

He's married and his wife is in charge of finance - well, at least it seems like it to me. Basically, both their salaries go into a joint account from which a large sum of money is transferred into an account from which all the bills are paid - what's odd though is that this is account in his wife's name and he doesn't have any access to it. He's had a letter from the bank today saying that last 2 mortgage repayments haven't been taken out of this account as there weren't sufficient funds in. When he phoned the bank they told him, that the monthly amount being transferred into the account wasn't enough to cover outgoing bills. Obviously my friend didn't know this as he doesn't have access to the account and the wife never said a word! He's not saying that the wife has spent the money though she just didn't tell him. I don't think that she's that good with money if she allowed this to happen and not notice it!!!!!

I'm not sure how exactly he got into so much debt but I know he helped his son out financially numerous times. He's really too nice for his own good.

I really really would like to help him.

So, do you think equity release is a way forward for him?

Is there anything else he could do? Where should he start? What should he do first?

Mnay thanks in advance

pounds_and_pensive

If the account is in his wife's name and he has no access to it, how come he was able to ring the bank and discuss the account transactions? Are you sure you're not being spun a line here for some reason?

hatsepsovet

pounds_and_pensive wrote:

If the account is in his wife's name and he has no access to it, how come he was able to ring the bank and discuss the account transactions? Are you sure you're not being spun a line here for some reason?

I'm not really sure what you mean by the above but I probably got the wording wrong. The letter was probably from the mortgage people and the account is in his wife's name so I'm not really sure how he managed to discuss the transactions.
He only talked to me as I don't think he can talk to anybody else - and believe me, it wasn't easy for him.
I was sincerely hoping to get some advice for him so I'm quite surprised that the first response I've had was scorn.:o( and I have to defend myself.

nearlyrich

I don't think pounds and pensive was being nasty here, it is a valid point and one that came to my mind too.

I don't think anyone will be able to say whether equity release is the correct way forward without knowing a lot more details of your friend's finances.

pounds_and_pensive

nearlyrich was right, I wasn't being nasty (quite the opposite - something in your friend's story didn't ring true for me, and I just wanted to make sure you were aware of it too as I'd hate to see anyone fall victim to any kind of trickery). I'm sorry that this was perceived by you as 'scorn', just as I'm sorry that I've clearly misunderstood your post. Since it still makes no sense to me, I'll leave the thread to many on here who are far brighter than I am in the hope that you'll get the kind of advice you anticipated.

Good luck.

CLAPTON

your friends neeeds to come and post first hand.

homersimpson_3

people are asking for information not because of scorn or they're being nasty only because they need more information to provide any form of constructive advice and they're trying to 'protect' you- it's seems you're friend may have only told you some of the story- though i accept it is very difficult for people to open up to anyone about debts.
if it's any help a friend of mine started looking at this and sent away for one of the booklets by one of the companies- there are major drawbacks with it including (a) other people with vested interest in house having to sign away their rights (b) large arrangement fees- average cost £700 - (c) only being allowed to move to a house costing same or higher price - (d) huge fees if you repay mortgage early. (and the list goes on.......)

msmicawber

Hi,

Could your friend's wife have lost her job and not had the nerve to tell him? Another alternative is that she herself has runaway debts - what do you think?

I don't see how he can hope to make plans until he knows where all the money's going, and the extent of all debts. If he went ahead with the equity release and then found that there were masses of other debts, he might end up without enough money for his retirement.

I can't see an alternative to your friend asking his wife why the mortgage hasn't been paid for two months and insisting (gently) on seeing the statements for the household account in her name. I hope you can persuade him to do that - he doesn't have to be aggressive. It could well be that she's like a lot of posters on here and in terror of telling her husband about runaway debt.

fatbelly

hatsepsovet wrote:

Where should he start? What should he do first?

Mnay thanks in advance

Make sure the mortgage is paid up to date. Lenders can commence possession action at two months arrears - and many do that.

Anything secured on the property is a priority debt and if that means the other creditors have to go without full payment, so be it.

Then probably get him to talk to Payplan or CCCS about the credit cards and any other debts