Parents in debt!!!

Pinksocks_2

I know they do claim for disability of some sort although after Dad had his stroke he told us he was not going to claim a penny as he'd worked since 15 and always paid his way. We did however manage to make him make the claim. So this is what I'm up against!!

That's a another thing I'll ask her today what type of benefit he gets. He needs help getting washed and dressed but is able to walk with a stick.

I'm not sure my Mum was in the right state of mind when she got into this mess.

I'm scared of what I'll find out next.

fatbelly

immoral_angeluk wrote: »

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:

Yeah, I wasn't really saying that the OP could do anything (though the agreement may not yet have been signed by all parties) - just a warning to others to avoid using their bank for 'help' with debt problems as they always work in their best interest rather than their customer's.

I know you see this day in day out but we can't highlight it enough.

Anyway - off to watch the rugby now.

Pinksocks_2

Hi, a wee update just phoned Mum. She gave me the consolidation loan details, they are:-

£19,625 borrowed, pay back £38,724 eeek!!! Lloyds TSB are a lovely bunch.

My Mum also told me that she'd asked the bank manager what if she made minimal payments and asked for the interest to be frozen, the manager told her she'd be harrassed day and night with phone calls and people would come to her door to get payment. I should really complain about the manager she had my Mum terrified, I am so angry.

The good news is she's coming down to look at the CCCS website, I'm so glad she didn't sign the loan.

I'm also going to claim the PPI on the loan.

Do you think it would be a good idea to get a DMP for her?

rising_from_the_ashes

A dmp may be an option but it will depend on how the income / outgoings stack up .... have you managed to get enough info to do a SOA yet?

Pinksocks_2

My Mum is coming to my house tomorrow with all the info. She managed to get all the direct debit listed from the bank. So tomorrow I'll get a SOA done. Thanks.

rising_from_the_ashes

Great - that will make it a lot easier to judge the real state of things.

I'm also wondering (and know this may be a very difficult subject to approach) whether you could persuade your dad to go to his GP and seek help about his drinking - that's a lot of alcohol (and money) to be going through each week and I'm sure it certainly can't be helping his health any.

Pinksocks_2

I will need to talk to Mum about Dads drinking he cannot go on like this.

I think I might have to give them pocket money or do their shopping for them but I don't think they'll agree.

I've got so many things to tackle just now. I'll let you know how I get on, it's going to be a slow process I think.

barbiedoll

You should definitely find out about the "charity donations" too. If your mum is a bit of a soft touch she may have fallen prey to the doorstep charity collectors who will have obtained her bank details and possibly signed her up to a huge monthly payment.

The bank loan sounds like a really bad idea. If she cannot afford the repayments on the current cards and loans, she will struggle to repay the new loan and the bank will waste no time in getting a charging order on their house to get their money. That's if the loan isn't secured on their property anyway, let's face it, it's not like the bank are going to have their customers best interests at heart. :mad:

Good luck with sorting this out, you've come to the right place.

Pinksocks_2

Thanks barbiedoll, I think she's coming round to the idea that the bank is not on her side and they are there to make more money.

The manager scared her when she went yesterday, I was supposed to go with her but I was ill.

She thought the manager was an angel because she'd visit them at home to sign the loan documents as my Dad is too ill to get to the bank at the moment and that the bank manager gave my Mum a hug as she left the bank. My Mum thought she was doing them a favour!!!

I will get it sorted somehow.

Thanks to everyone on here it's you guys who have been angels.

katsu

On one level the bank manager is helping your mum, as she is coming up with a monthly payment that your mum can hopefully afford? It doesn't affect the manager that your parents will be paying this off for a long time. Perhaps you can tell your mum to look at it as the lady was being sort of helpful in the short term but doesn't have her long term interests at heart as she is just concerned with making sure the bank keeps getting paid. Maybe this would be an easier way for your mum to look at it? Might make your mum feel less foolish? The manager is "doing your mum a favour" by coming to the house, but it is because it is good for the bank to do it.

I'd suggest what you really need is to get an SOA together, looking at their current spending. The house is paid for, so no monthly mortgage, and if your dad can't go to the bank he isn't going out spending the money, so I think you really need to work with your mum to help her understand where the money is going. For your parents to enter a DMP they'd need to be able to agree a new budget to stick to.

It is true that your parents are likely to get letters and phone calls if they do enter a DMP. It might be that if you work on the SOA that there is a way to pay their monthly payments and not have to get cash out on the CCs, so they may not need a DMP or a bank loan.

Good luck with it all.