Parents in debt!!!

Pinksocks_2

Hi here's my Mum's SOA. Hope you can help.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1500
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 71
Gas..................................... 80
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 57
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 13
Car Insurance........................... 23
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Lotto................................... 28
Home help and cleaner................... 80
Total monthly expenses.................. 1213


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
TSB c/c........................4000......200.......18
Capital One....................8709......260.......13
TSB loan.......................6947......256.......0
Overdraft int/fees.............800.......80........NaN
Total unsecured debts..........20456.....796.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,213
Available for debt repayments........... 287
Monthly UNsecured debt repayments....... 796
Amount short for making debt repayments. -509

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,456
Net Assets.............................. -20,456

Pinksocks_2

Thanks for the replies arsenalbarnie and Tixy. God, arsenalbarnie your poor Mum you all must have been worried sick. I wonder how many others are going through this alone.

You are right it is a generation thing thinking banks have to obeyed and worshipped. I also feel I am constantly repeating myself but I know they are worried sick so they aren't taking much in at the moment and the next payments for the c/c and loan is in a couple of weeks. I'm glad I'm on holiday so I can devote time to this mess.

I am going to stop and claim for the PPI.

Her Cap One credit card has £112 interest which includes cash advance interest and £68 PPI making her pay £180 before she hits any debt.

Can I also add again if anyone is keeping debt a secret please tell someone.

rising_from_the_ashes

Awww pinksocks, what a difficult time - I do agree it's a generation thing .... even when I was younger, I can remember that everyone had their own bank manager who tended to know them/their situation and genuinely did their best to help. This has long gone due to the huge companies around now but it's hard for older people to realise that things have changed.

I've had a quick look at the SOA and have a few comments:

Pinksocks wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1500
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 71 Very high - does it include arrears? Can you have a look and see if they can switch supplier?
Gas..................................... 80 As above
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 57 Jeeezzzzz - what package have they got? This must be able to come down a bit. Have a look at uswitch etc for comparisons to the package they've got (and do they actually use everything they're paying for)
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 40 This is unaffordable at the minute
Internet Services....................... 0
Groceries etc. ......................... 450 She should be able to get this down a bit but take it this incl the alcohol (?) which will obviously be a hiccup to this
Clothing................................ 20
Petrol/diesel........................... 120 She must be able to cut this down a bit if they're both not working and it's "social" use only
Road tax................................ 13
Car Insurance........................... 23
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15 Again, it's worth having a hunt around at renewal - my B&C costs equivalent of £15/month for both
Contents insurance...................... 14 As above
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40 Is there anyway she could reduce (not sure if other family members are aware of the problem - they'd probably be happy to forego pressies for a while if so
Haircuts................................ 40 Again, she should be able to reduce this - many salons etc offer discounts for OAPs on certain days
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Lotto................................... 28 Again, very high when she's got so much else to pay just now - it's really a luxury she can't afford just now
Home help and cleaner................... 80
Total monthly expenses.................. 1213


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
TSB c/c........................4000......200.......18
Capital One....................8709......260.......13
TSB loan.......................6947......256.......0
Overdraft int/fees.............800.......80........NaN
Total unsecured debts..........20456.....796.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,213
Available for debt repayments........... 287
Monthly UNsecured debt repayments....... 796
Amount short for making debt repayments. -509

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,456
Net Assets.............................. -20,456

That's a pretty big shortfall, even making cuts to the above .

Do you think you'd be able to persuade her to talk to one of the debt charities? (maybe an appt with CAB would be a good place to start as it's face to face - again older people often feel more comfortable with this)

Pinksocks_2

Thanks for the quick reply. Yes I agree on everything you have highlighted.

My Mum is what you'd call a loyal customer.

My next task is to change suppliers and insurances with her.

Her food bill does indeed include alcohol, but today seeing the figures she is making plans to change a lot of things. She is going to try and budget £60 per week for food so there's a start. I must be getting through to her at last! I can feed 2 adults and 3 kids for £320 and we eat very well.

Forgot to add she's giving £12 a month to charity, no wonder she didn't want to come down to see me. Some tough love is called for.

Thanks again for you input.

Tixy

Has mum seen and understood the SoA pinksocks? How does she feel about it? does she accept there are some cutback she can make and needs to make? Has it put her off the idea of the loan? or made her want it more? (edit - sorry you answered this whilst I was typing)

I think the answer is going to be to cut down expenditure where you can, they are going to have to get used to living on a budget, and then they should be in a position where they could afford £400 - £500 towards the debts each month and then a DMP would be manageable. This would seem the way forward if they want to keep the house. If creditors agree to freeze interest then they could clear the debts within say 4years. It will only work if she is committed to cutting back and realises she will have no access to credit going forward.

I think rishing from the ashes had already identified the main places to look at making cutbacks. You should be able to help them reduce some (utilities, insurances, phones etc) but for others like groceries, petrol, lottery etc, it will ultimately be down to them to not overspend in them.

rising_from_the_ashes

It's one of the things I hate about utility companies ..... I honestly think they should be obligated to do an annual review of all customers accounts and advise what the best plan would be for the customers useage (whether it gas, elec, phone etc) - and let them move onto that plan if they want to, penalty free.

I recently moved supplier and when I did the comparison site check, my current provider came out with several packages that were cheaper than the one I was on ... I asked them if I could switch and I was told "yes" but they were still going to charge me an exit fee for my current product!

I declined ... and have moved to a different suppler - main reason, if my old supplier had a cheaper product, why didn't they tell me about it & give me the option of moving! (instead of milking every penny out of me).

huskypup

Pinksocks wrote: »

Hi here's my Mum's SOA. Hope you can help.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1500
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 71 is this the cheapest tarriff ( we are 2 adults and 2 teenagers in a 4 bed house and only pay £55)
Gas..................................... 80 is this again the cheapest as with the electricity - we pay £50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 57 - expensive - combine with satelite (SKY) for £48 for phone and satelite
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 40 - see phone comment above
Internet Services....................... 0
Groceries etc. ......................... 450 - wow that is alot for 2 people - see if that can be cut down by £100 - £125
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 13
Car Insurance........................... 23
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Lotto................................... 28
Home help and cleaner................... 80
Total monthly expenses.................. 1213


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
TSB c/c........................4000......200.......18
Capital One....................8709......260.......13
TSB loan.......................6947......256.......0
Overdraft int/fees.............800.......80........NaN
Total unsecured debts..........20456.....796.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,213
Available for debt repayments........... 287
Monthly UNsecured debt repayments....... 796
Amount short for making debt repayments. -509

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,456
Net Assets.............................. -20,456

Didn't want to read and run, but have put a few things in above which could save £200+ immediatley.

I was you 6 months ago, trying to sort out my parents debts - but unfortunatley it didn't come to light until my mum had passed away:(. We have had to cut my dad back on what he was spending - we convinced him to sign up with CCCS, and life for him and us has been so much better.

Hope you are ok.

And don't forget to use Quidco if you are going to swap any of there bills - any cashback can be used as a nice treat for your mum.

RAS

Pinksocks wrote: »

Hi here's my Mum's SOA. Hope you can help.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1500
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 71 - very high even with two at home.
Gas..................................... 80 ditto - can you see if there are any local scheme offering cheap or free insulation or draught proofing to help reduce these, particulalry with dad being on DLA?
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 57 - this is massive. What are they doing to get it this high; phoning premium numbers?
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 40 - they really need to get rid and go freeview for a year or two.
Internet Services....................... 0
Groceries etc. ......................... 450 this is massive. Can you ask mum to split it into alcohol and other, so that this is made explicit. Aim for about £250 PM for food etc.
Clothing................................ 20
Petrol/diesel........................... 120 - where are they driving, so much? Can they reduce this?
Road tax................................ 13
Car Insurance........................... 23
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 40 - can they reduce this?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Lotto................................... 28 - get rid
Home help and cleaner................... 80 - I assume this is funded by the DLA?
Total monthly expenses.................. 1213


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
TSB c/c........................4000......200.......18
Capital One....................8709......260.......13 - what would this reduce to with PPI removed?
TSB loan.......................6947......256.......0 - and with PPI off this
Overdraft int/fees.............800.......80........NaN - this is crazy, they urgently need a new account and to get this paid up and closed (I am assuming the bank will not try and ba smart and use it to fund the other debts)>
Total unsecured debts..........20456.....796.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,213
Available for debt repayments........... 287
Monthly UNsecured debt repayments....... 796
Amount short for making debt repayments. -509

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,456
Net Assets.............................. -20,456

OK

If you can try and estimate how much PPI they might get back (6 year's worth if relevant), their debts might get much more manageable - I mean £68 for 6 years is £4896 which would make a massive dent in the debt they owe.

I suspect you will find the PPI on the loan is a single charge upfront.

Once that happens with the improve SOA, they might get there, as long as the booze issue can be dealt with.

Pinksocks_2

Hi Tixy, yes she has finally admitted she needs to change, seeing the figures has helped her and shocked her I think she has just got so confused and scared it became too much too cope with. She told me today her hair has began to fall out. I am so concerned for her health.

After our "talk" I said she must never spend on a credit card agian she agreed and said if she did it would kill her and she was not joking, god what a rollercoater I've had for the last few days my Mum has been living for a while like this.

Our changes will be:-

1 Stop and claim PPI
2 Reduce shopping, I'm going to take her (cruel but necessary)
3 Find cheaper deal for utilities
4 Cut up credit cards
5 Cancel lotto, charity
6 Most important of all take Dad to GP about alcohol this is going to be hard

I feel slightly better now. I've started to help her.

arsenalbarnie

Good advice given on the soa, just try and tackle one thing at a time. Priority to get the ppi cancelled. I think a trip to cab is a good idea but they may have a waiting list. I put all my parents details on one of the debt charity sites to see what they recommended, cccs I think.

Has your mum done a credit check recently? We managed to get a b/card on 0% for 16mths in my dads name and transferred some of the debt onto that, as his credit score was ok. Again I don't know how much of the situation your dad is aware of. I see they have a home help, do they get benefits to help pay for this, sorry if you mentioned that already.

If they are in deficit with their gas and electric maybe you could use their winter fuel payments (due in November), to pay some back.

Just a couple of ideas. Keep going, it will get better.