Loan Settlement Offers

forestboy

My 64 year old mother has had money issues for a while now, but over the last few years has been advised by the CAB, who helped her freeze any future interest on 2 loans (£5k BOS & 14K Lloyds) and arranged payment plan of £1 a month.

Recently she has finally sold her house and has a very a small amount of capital, but will need it for future living expenses.

I contacted both banks to ask for current balance and they both mentioned they would take an offer on the settlement of debts.

A. Do you think she should keep paying her £1 a month for the rest of her life and keep captial for future living expenses or clear both loans?

B. If we decide to pay off loans, not sure what kind offer to make on loans? Plus what are the disadvantages of making an offer on a loan settlement rather than paying it all off?

Thanks in advance.

husemin

Maybe you's should not pay the loan's off in full because you's may be tempted to get another loan, I would just pay the £1 a month and enjoy the rest of your live's.

H