Help for my mother

Debbiecatal

Hope you will be able to help me.

My father died in May this year, and left my mother with a much reduced income, which was a shock as my father had always looked after their finances and had always said she would be all right when he died.

She had a loan with Nationwide which has a current monthly payment of £210. Her income has reduced to the extent that she cannot afford this payment at all. I am not in a position to be able to help her very much, but can a little, so Mum went to the bank and asked them to extend the loan so that the payments were £100 per month.

They have refused this due to 'lack of funds' and have refused again on appeal.

Mum has a perfect credit record and was reluctant to lose this, but she is in her 70s and very unlikely ever to need credit again.

My instinct is to carry out an income and expenditure exercise and actually offer them what she can afford to pay - this will be less than £50 per month I expect. We would go to the local CAB but getting an appointment to see a debt counsellor there takes a long time and we also have the problem that my mother's only sister is terminally ill and is not expected to live till Christmas, so Mum needs to get this sorted so she can go up to stay with her and be with her for her remaining weeks. (She lives 150 miles away).

I am happy to go through the form with her but I would like to know what are acceptable amounts for things like food, toiletries, clothes etc that we should be putting on the form as expenditures so that I can pre-empt any challenges from Nationwide.

We will also move all her accounts from Nationwide to Natwest prior to sending this to them so that they don't do anything like freeze her current account.

Can you please give any advice on anything that would help her and confirm whether or not we are doing the right thing by defaulting?

Any comments gratefully received

Debbie

CH27

Has your mum applied for all relevant benefits? Council Tax? Pension Credit?
Does she get her 25% single person discount on her council tax?

Have a look at the CCCS site.

Debbiecatal

Yes there is nothing else she can claim - because she was registered as my father's carer she was actually entitled to more benefits before he died than she is now, even though all his pensions died with him - none of them had widow's benefit as we thought. She now has less housing and council tax benefit and less income than before so she is in a very difficult position.

We have no way of increasing her income, the only way forward is to reduce her expenditure to the minimum. She has cancelled everything she can and still has only about £50 per month left to live on when all her bills (including the loan) are paid - so this £210 is impossible for her to pay and Nationwide have been worse than useless in helping her!

UselessMoney

Suggest look at income/expenses (overestimate expense, inc annual items such as insurance/coucil tax etc), come up with an amount that is affordable (no matter how small) and send recorded letter to Nationwide (keep copies) politely explaining situation (ONLY mentioning amount willing to pay). Worst likely scenario as far as aware is the bank taking to court who should then look at her income/exp and set a figure that Nationwide would have to accept. Apparently if you moved to the co-op bank they will give you £200 for nothing! Raising funds by selling of unwanted household items might help but dont give away. Advice or crisis loan may be obtained from local benefit office? Keep calm and dont forget 'watchdog' .

piptom&AndyPandy

Hi
Have you spoken to Age UK (age concern) they might be able to help I know they managed to get some debts sorted for my own nanna.

P
xx

paulmapp8306

The £50 she would be left with IF she pays the loan - what is that to cover?

I mean has she already budgeted for Gas/Elec? Food? etc or does that have to come from the £50.

Do and SOE INCLUDING these things. If your unsure speak to CCCS. You dont have to go forward with a DMP or similar, but they will help with figures that would be acceptable.

AMILLIONDOLLARS

I am spreading the word on PPI Insurance Reclaim. Was this added automatically to your Mother loan? Did she know she had it? If the answer is No, then should might be able to claim for mis-selling. Pop over to the PPI Reclaim Forum for some advice and help.

AMD