Help!

room512

My MIL has a credit card that we owe 16000 on. We pay the monthly repayments but obviously it's going to take forever to pay off. She wants to get a loan to pay it off and then we can pay the loan repayments monthly.

The only drawback is that she's a pensioner and 75 years old. She owns her house and has no mortgage on it (worth about £250000). She's willing for the loan to be secured on her house.

Is this possible? There's no way we would get a loan for that amount as our credit rating is appalling. Spent the whole weekend sorting everything out. Didn't really know if it's possible and who to look at?

Can anyone help with advice please? Thanks for reading x

DCFC79

How come your paying the monthly installments ?

Whos accumulated the debt ?

room512

DCFC79 wrote: »

How come your paying the monthly installments ?

Whos accumulated the debt ?

Us! Over a huge number of years.

Emmzi

I wouldn't ask her to secure her home. Unsecured to secured debt is never a great idea, much less so at her age when she may need to sell the property fast and make decisions about end years.

Bluntly, she is a little old for a £16k loan on presumabley a pension. The odds are not great unless she can get a loan with the same company the card is worth (they will be no worse off really)

What interest rate is she paying?

What did the money go on and can you return or sell any of it?

DCFC79

room512 wrote: »

Us! Over a huge number of years.

Sorry for the questions, just found it strange your MIL's cc was used by yourselves but as you ay your credt rating isn't good. Just not come across it before.

room512

we made sure that we always paid the minimum payment on her card before anything else.

The APR is 26.9% and is with Barclaycard.

She's happy to secure the debt against the house as she knows we will repay as we have never missed a payment in over 12 years.

If she becomes ill and has to sell the house then obviously the loan would be repaid as it will be in her name against the house!

Emmzi

well hold on a minute. Minimum payments isn't a whole lot of help is it....

how much are you repaying every month now, and how much can you afford to repay?

I don't think the rates are going to come down moving from a card to a loan as much as you think they are...you need to be throwing serious money at this. serious, until it makes your budget squeak, money!

What is your plan for change of circumstance - unemployment or illness -she cannot take illness cover in your name - and with a fixed loan you *cannot* pay less like you can with a credit card.

Emmzi

ETA: you already said your credit rating as appalling
1) are you actualy asking her to consolidate other debts for you?
2) what other debt, CCJs etc do you have
3) what is your income?
4) what is your expenditure?
5) how secure are jobs?
6) other non working plans? kids maybe?

kazwookie

You need to sort yourselves out, you actually have not paid any thing what so ever in the last 12 years, as the interest is more than the payments.

What was the amount 12 years ago?

What have you actually spent the money on?

What do you have you can sell?

Can you get 2nd jobs?

I suggest a SOA to see where you actually are, rather than where you think you are.

Apples2

Who else will be affected come the inheritance day if you squander the equity?

this post makes some depressing reading, especially reading you are not even attempting to pay the debt off

room512

We have done a statement of earnings this weekend. We pay as much as we can. As much as I appreciate the advice it is very harsh! We have other debts that we are consolidating, but as the card is in her name then there's little we can do with it. If we are stuck as regards a loan then we will continue as we are and when we have paid the other debts throw any spare cash at it.

As regards job security my other half and I are pretty secure. We have no children.