Parents in debt!!!

dancingfairy

Hi a few thoughts for you:
1) it might be worth getting hold of crdit reports for your mum espcially (check all 3 agencies). This should higlight all the debts. Hopefully she will know who she owes money to but the credit report will back this up and may provide useful clues.
2) The bank account is urgent to get moving on.
3) You need to try and find out where all the money is going. Your parents needs to prioritise. Group A - most important - electric, gas, council tax, mortgage/rent, food etc. Group B - fairly essential but not exactly critical to maintaining a house eg car costs, tv licence, mobiles etc Group C - debt repaayments. Obviously if there is a shortage after paying essential bills then debt repayments will be squeezed.
4) Perhaps your parents could get bank statements to try and identify where there money is going? Also get them to try and fill in a spending diary to identify what they are spending on a daily basis - often you think you are not spending much money but it all adds up -eg coffee here, lunch out there, go to shop for bread and milk and spend 20 quid etc.
Best of Luck
df

ILW

Sell up, downsize and come out with no debts and probably a cheaper to run house.

Seems the obvious answer to me.

arsenalbarnie

Hi there I Pinksocks. I really feel for you. I was in exactly your situation a year ago. My mum ran up debts over years that my dad knew nothing about. However after lots of tears,stress and help from MSE they are in a much better place financially. I have taken over their finances much to my mums relief, reclaimed thousands in PPI money and they now comfortable with only a few things left to pay off.

Everything dancing fairy has recommended is great. Follow the great advice on here and you will start to get somewhere. It is very difficult at times as emotions are all mixed up and you are in shock about the whole thing. I was angry and hurt with my mum for running up such huge debts but also upset that she had had all that worry and had never asked for help. Small steps, good luck.

Pinksocks_2

Thanks for the replies. Sorry I didn't post yesterday I've been ill with sickness.

My Mum went to the bank yesterday they will consolidate the credit cards and loans. But I don't know the interest rate. It's like getting blood from a stone!!!

However when she phoned me last night she told me she had been donating to charity. She also told me my Dad has been drinking very heavily. I am so shocked as I'm there almost everyday. He's been drinking about £40 to £50 a week. I am so upset and shocked as his health is so poor.

I am going there today to get the direct debits list and will ask her about the loan rate. I will also get her to keep a spending diary too.

I know I am in no position to give advice but if anyone is keeping their debt a secret and has become a big problem please tell someone, the people who care about you will help.

Thanks to everyone for their advice I'll post as soon as I know more.

Pinksocks_2

Sorry I meant to add, their house is worth around £90,000. Not sure if they'd manage to cope with the upheaval of moving. Not much is selling here at the moment, some houses here are still up for sale after a year, but thanks for the suggestion.

immoral_angeluk

Aren't the banks helpful. Consolidate... fantastic. [insert rolling eyes smiley here]

Anyway, if they've decided to go down that route then that's their choice and I'm presuming they're compus mentus (however you spell it).
What's important now is ensuring that they maintain the payment, they're not being totally ripped off by the bank (ie check the interest rate) and to help with their overall budgetting to ensure they don't end up with double the debt...

Definitely do a benefit check from turn2us's website or from CAB too.
IF your dad has had a stroke, how is he managing day to day? Has it affected his day to day ability to care for himself or with his mobility? If so then he a look at claiming DLA for him.

fatbelly

Pinksocks wrote: »

My Mum went to the bank yesterday they will consolidate the credit cards and loans. But I don't know the interest rate. It's like getting blood from a stone!!!
... Thanks to everyone for their advice I'll post as soon as I know more.

The consolidation loan will be a good move for the person who sold it to them ... not necessarily a good move for your parents. I would not trust banks to give unbiased debt advice.

I am hoping that this isn't a secured loan...

immoral_angeluk

fatbelly wrote: »

The consolidation loan will be a good move for the person who sold it to them ... not necessarily a good move for your parents. I would not trust banks to give unbiased debt advice.

I am hoping that this isn't a secured loan...

Considering their age and mental state/health issues, I'm wonder if there'd be a case for irresponsible lending.. BUT of course this isn't the OP's decision to make, it's her parents' so not really a lot the OP can do if that's what they've decided to do...:eek:

fatbelly

immoral_angeluk wrote: »

Definitely do a benefit check from turn2us's website or from CAB too.
IF your dad has had a stroke, how is he managing day to day? Has it affected his day to day ability to care for himself or with his mobility? If so then he a look at claiming DLA for him.

Too old for a new claim for DLA, IA.

It'll be Attendance Allowance and, as you know, no mobility component. I've always thought that unfair.

Pinksocks_2

Thanks, yes banks are helpful...not, I keep trying to tell Mum they are crooks in suits but she is old school and anyone in authority must be honest!! haha.

I feel this is going to be a long hard journey.

On a brighter note I managed to give her £250 so she can go to the dentist and fill her cupboards and she seem more upbeat last night.