Parents in debt!!!

Pinksocks_2

Jeez, can't keep up with the replies thank you all so much.

Rising from the ashes, you are so right the utility companies should review customers accounts. When I've sorted my own account out even with one company they have so many products it is very confusing, so much more confusing for elderly and people with disabilities to cope with. Especially as we all need gas and electric to live. It is really shocking. My Mum hasn't got a computer so isn't able to access all this information.

Huskeypup, sorry about your Mum, it must have been difficult enough without the added stress of sorting out finances. I will also look into Quidco. Their gas and electric are high because the heating is on constantly because my Dad is always cold, but it is very high and they have no arrears.

RAS, they pay homecarer privately don't know why. Yes the charges in their account are crazy but she won't change her account she can't cope with the upheaval but I am working on her. Cap One is PPI is £68 per month.

Baby steps all the way!!!

Pinksocks_2

Arsenalbarnie, I tried this morning to get a lower cost loan and 0% credit card but declined. She has let the situation go for too long her credit rating but be shot to pieces.

Their home help is private so no help towards cost I think. I need to also go through what they are getting benefits wise. It's difficult as they have always kept their affairs private so this is a really big deal for them. Thanks.

ceeforcat

Sorry for dropping in here - not my area of expertise. But don't Halifax do lifetime mortgages on an interest only basis for those of a certain age. My parents have one of about £14000, repayments are about £52 per month. It will never be paid off but so what? Feel free to shoot me down on this one but, if possible, is it not a stress relieving option in this instance?

Sorry - just discovered they were withdrawn on 17th August. I just hope your parents do not go down the secured loan route

Pinksocks_2

Thanks ceeforcat all the replies are more than welcome. I have to be honest I haven't even thought of that option but I will look into it just now. You are right it is a stress relieving option.

ceeforcat

pinksocks - read my edit.

Additionally, something I would generally not recommend but, in this situation, have you considered equity release?

arsenalbarnie

Pinksocks wrote: »

Arsenalbarnie, I tried this morning to get a lower cost loan and 0% credit card but declined. She has let the situation go for too long her credit rating but be shot to pieces.

Their home help is private so no help towards cost I think. I need to also go through what they are getting benefits wise. It's difficult as they have always kept their affairs private so this is a really big deal for them. Thanks.

I know it must be difficult for them but they will get used to it. It was worth a try on the 0% front. You have a plan now to start with and it's nice ticking things off the list.

Do they have anything they want to sell? I didn't do it straight away, but after a couple of months, mum would give me stuff to put on Eb*y to sell, managed a few hundred pounds. She had a hostess trolley she never used, card making stuff, etc, It all mounted up. Also Music Magpie for old CDs, DVDs is good. Just parceled up some round our house today and got £35 winging my way for stuff just lying around and it's free postage. Worth a thought when the dust has settled a bit, it will, believe me.:)

Pinksocks_2

Just read it I was looking for info and flicking back, that's a shame. Not even thought of equity release. Got some homework to do tonight. Thanks

arsenalbarnie

ceeforcat wrote: »

pinksocks - read my edit.

Additionally, something I would generally not recommend but, in this situation, have you considered equity release?

I personally wouldn't go down this route, but that is because I am very wary am sure someone on here somewhere will be an expert on it. I only ever seem to remember the bad things about these schemes.

Pinksocks_2

Yep lots of things to think about.

It has also made me think about others too. Most of my friends and some family have huge houses with "normal jobs" I could never afford to have one and to be very honest wished I could have one too. Some friends over the years have made comments such as why haven't you bought nicer house yet. But not now I'm glad my wee hoose(ex council) is almost paid, it may not be much but it will be paid for soon. I am also paying off my credit card and cutting it up. At least the banks can't hold me to ransom.

dancingfairy

It sounds like your parents have lots of options - it just a matter of finding the right one.
1) Do nothing and wait for everything to fall around them
2) default on everything non essential and agree repayment plans (a dmp).
3) get a consildation loan - obvioulsy risky depending on the terms available and whether it is secured or not, and it doesn't usually stop the underlying spending.
4) sell the house and downsize.
5) an IVA? this would involve making the set payments for 5 years and then having to remortgage to release equity to the creditors which may or may not be possible given their ages (and may not be desirable either).

My point is that yes they are in a mess, but there are options out there for them. It is not all going to be plain sailing but your parents can get this one sorted, especially with your support.
Best of Luck
df