Please Help, Unsure Where To Turn Now..

TheToadster

Hello everyone,

This is a really big step for me posting on this board but I really dont know where else to turn and really hoping someone can help. Having lingered on this board for a while anonymously reading threads I now feel confident enough to post knowing I wont be judged...

My situation is that I am a 70yr pensioner, receiving disability allowance and minimum income guarantee. I have a small (£30k) mortgage and alot of equity in my property. I am able to manage the fixed mortgage payments and am confident I am able to just about live on my pension income.

The problem is my son hit troubled times with his business about 3 years ago and needed money to ensure the tax man was paid off, so I did what any parent would do and lent him the money which I had to borrow from a variety of credit cards - this totalled about £30k. As I said, please do not judge me or my son for this, I did what I felt was right. For the last 3 years my son has been making the card payments regularly, never missing a payment so everything was fine. Between us we also moved the debt from card to card, from 0% deals to life of balance deals, doing the best we could. Unfortunatly circumstances have taken a turn for the worst and my son can no longer make the payments required for the credit cards. He has looked into securing a loan against his property etc so not to leave the problem with me but due to lack of equity has not been able to.

Thus, the problem is I now have these credit card debts and no re-payment mechanism. I know some may consider what I did stupid but I have no regrets and as mentioned my son was making all the payments. I have tried to speak to people for advice, and have been told I could be in grave trouble as what I did was fraudulent - this worrys me so much I am now not sleeping. I have never commited a crime in my life and certainly never intended to commit fraud.

As I am now 70 I dont mind companies taking my credit from me, providing I am able to stay in my house as I need to stay in my bungalow due to my disablity - what I dont want to do is in any way affect my sons credit rating as he is doing all he can to keep a home and run an honest business and has been nothing but honest with me and like I mentioned has paid every month for the last 3 years and would pay now if he had a mecanism of doing so. I would hate for this to ruin his credit profile although some may argue ultimatly it is his debt.

Please help - I am so worried and scared what to do now. I have not included an income / expenditure as I only have my pension as an income and spend the absolute minimum.

angelavdavis

Sorry to hear about your predicament.

I suggest you contact CCCS for advice - they will be able to assist in contacting the credit card companies concerned to arrange frozen interest and a repayment plan.

Does your son have anything he can sell to help lower the amount of debt concerned?

TheToadster

He has been selling all he can to make the last few months repayments but now it has got to a position where a constant source of money cant be found.

If i go to the CCCS will they chase him for the debt? This is what I am most frightened about?

janiegs

I can't see how what you did was fraud. As far as I could tell, I could go to the hole in the wall, draw out money on my credit card and give it to the next person passing.....

They're your cards, so you're responsible for the debt. I agree that a repayment plan and frozen interest sounds like the best way to go.

It is possible that if you have county court judgements made, then a charge could be placed on your property. This does not force you to sell, it means however that if you do sell your property, your debts must be settled out of any proceeds.

beanielou

As the debt is not in your son's name but in yours, I cannot see that his creit rating will be affected.It will be yours.
Welcome to MSE & take care

joeblack066

Echoing Janiegs, absolutely NO fraud here, you have done what you felt was right, and it is not for lack of tryimg that your son cannot pay the loans at the moment. The debt is yours, go to the Citizen's Advice, they will help you. No one can chase your son for the debt. As janiegs said, a CCJ would mean that there could probably be a charge made against the house, but as the CC debt is unsecured, you can't lose the house for it. Try to relax, you are a caring loving law abiding person. It's just numbers at the end of the day. Your son is a lucky guy.

kathfisch

TheToadster wrote:

He has been selling all he can to make the last few months repayments but now it has got to a position where a constant source of money can be found.

If i go to the CCCS will they chase him for the debt? This is what I am most frightened about?

CCCS (consumer credit counselling service) won't chase anyone for anything! They will give you free and impartial advice about the best way to solve your debt problems. It can't hurt to call and see what they say!

As far as I can see no fraud has been commited! You have done what I suspect most parents would do and taken on debt to help your son out of trouble. You have knowingly taken on debt and are responsible for it, I doubt that it matters to CCCS or anyone else what the money was for... you just happen to have 'spent' it on your son.

Can I ask, is his situation (re. not being able to make payments now) a temporary thing, is it possible that he will be able to make the full payments again in future? This might affect the way you approach the creditors. Do you or your son have any money with which to service the debts? I mean, would it be a case of negotiating reduced payments or is there simply no money at all?

There will be a way to work through the problem and we're all here to support you!

Kath x

TheToadster

Thank you all for your replies so far, it is certainly helping us both.

At the moment I would realistically say my son has no means to continue to repay (perhaps £100 a month at absolute most) It is not for his lack of trying, he almost has square eyes from QuidCo, Ebay etc! However we both felt it best to always settle a tax bill over and above anything else as we both believed they can get nasty!

My personal position is the only income i have is my state pension and disability allowance which is hard enough to manage on as it is. You mentioned about a charge for the debt on the house - without sounding morbid as I am now reaching 71, would it be worth me offering to make them a payment based upon when my estate is sold and then reduce what I have on my will. My intention is for my estate to be split 50/50 between my son and daughter, could I offer the companies an amount to be taken at "x" point and then reduce my sons share of the will? Or do you think companies wont entertain this?

Again thank you all so much xx

janiegs

You can only ask....but as you're not bothered by your credit rating you could probably offer all companies the minimum payment you could afford...say £5 per month and ask for interest to be frozen.

A county court judgement is only legal recognition of a debt, it doesn't mean that you have to sell your house. You don't even have to attend court, it can be granted in your absence. This enables the company that you owe the money to to put a charge on your property.

You could state the amount you will leave to your daughter i.e. 50% of your estate and then say that your son is to have the remainder once any charges etc have been paid off.

janiegs

P.S. It's not morbid - if you can get it sorted you and your son can enjoy your time together be it 5, 10, 15 or 20 or more years without worry and stress.

TheToadster

Thanks Janiegs,

I heard on the radio that having a CCJ or similar can stop you getting home and car insurance, is this the case? I would be so cut off if i couldnt use my car anymore.