mum is in debt am trying to help her need advice please

mirrorimage0

hi all, my mum has got herself in to debt with credit cards etc, the amount of debt is around 28 to 30 thousand (i am just adding it all up) and also my dad doesnt know how much exactly:eek:

i would like some advice on the best way to go about getting repayment schemes or something, i have spoke to her bank and they have said that if she applies for a consolidation loan of 25 thousand over 7yrs she will pay back 383.86 with payment protection at 7.8% which ends up paying back 32244.24. now is this the best way to do it if she gets accepted for the loan (dont know if she will get it yet)

any advice will be appreciated. thankyou.

pania

Hi Hun. Probably best to put down a detailed list of incomings and ongoings, interest rates etc. Consolidation is usually a last resort if it can't be sorted other ways. See southernscousers sticky at the top of the forum to get started. Is the £383 going to be cheaper than current outgoings? Will she extend the term of any of the debts?
Wellcome to the boards and fantastic for helping your mother out in this way. Big hugs xx

taxi73

I agree with Pania ....as consolidation isn't always the best idea and payment protection took out with a loan isn't usually good value...so a full list of income and outgoings and debts and interest rates could help us find a solution for her.

Keeping_Positive

soa the best way to go but if you do go down the consolidation route dont bother with payment protection its a waste of money. Make sure she could easily afford repayments. The consolidation method doesnt teach how to live on a budget as quickly as I have found to my expense. Its an easy option but backfires if 1)cant afford repayments so new cc bills or 2) just temptation leading to new cc bills.

My first consolidation loan was for 2k ( 10years ago) but my latest is 18k inc interest. It will be cheaper that sticking to my existing cc apr and its an easy monthly amount but if I am not careful in two years the loan will have a new o/d and cc bills and I wont be able to go much higher on a loan amount.

Good Luck

pania

Hey mirrorimage didn't realise it was you!! So sorry to hear you've got this to deal with along with other stuff bless you. Any time you need to chat just PM me. Hugs xx

mirrorimage0

thanks pania. x the thing is my mum isnt a silly woman and her and my dad both work, he actually earns well so its not as if they cannot afford to repay but my mum has hidden most of these debts from him so he thinks its something along the lines of 3 or 4 thousand on one or two cards. think he might be in for a big shock.
the rent is around the 500 per month mark as they rent from the council so its not that expensive there is three adults in the house so average gas electric etc and food bills, they like thier holidays and going out but if they cut back for a yr maybe two they will be fine, thye can easily afford i think about 400 pound per month outgoing for these bills but where they are split everywhere and they havent been paid regulary the interset each month alone one card is nearly two hundred pounds thats why i thought if its all under one thing it would be better. i will put a list together on here. thanks again

mirrorimage0

this is what i have so far from her last months bank statements etc.
natwest overdraft 2200.

allience and leister 10907.13 (268 monthly payment) (interest per month 211.38)

barcleycard visa 6150 (143 monthly payment) (int per month 105)

barcley card master 7900 (196 monthly payment) int per month 136)

barcley loan (she thinks around 5000) cant find the payments

mothercare 400 last month she paid 40 int 4.38

a loan she pays for brother 1000 left to pay
rent 500
aol 17.99
bt 16.00
bgc 52.25
tv lic 34.12
l.b. havering 127
sky 43.50
royal sun 30.83 (not sure what this is)
gas 40
electric 40

im pretty sure theres a few other things that get paid out but have no other bank statements
and thats without all the bloody online games etc she plays, i feel like banging her head against a brick wall and she will still go out and spend aaarrggghh. i have told her when i have had some advice and got some different options i will go sit down withdad with her he is gonna go mad. so on the plus side i might have a lodger that i can charge rent ha ha.

seriously any advice really appreciated. x

pania

sweetie you can't help it if someone hasn't had their lightbulb moment. does your dad not notice the outgoings from this? It sounds asthough your mum is a little in over her head and the £38- will certainly be a reduction. The only danger is if she then perceives herself as being "free" of the debt and starts to wrack up the bills again.Royal sun sounds like royal sun alliance and is likely to be an insurance premium of some sort, maybe life ins or accident cover.
Yep dad will probably go bonkers when he first finds out but is likely to be more hurt he didn't know. Things will settle in the end. Stay strong. xx

mirrorimage0

ha ha she hasnt realised yet i cut all her cards up, no seriously i have all her stuff here (she does know i have it) and im going to be ringing around monday asking for setlement figures to see hwat they say and hopefully get a loan, dad is going to have to know cause he will have to sign the loan agreement, she know it needs sorting just thinks she is scared of it all. she has always dealt with all the bank etc so dad doesnt really know any of it, he was shocked they had an overdraft, because he gets good wages average week 800 he just thinks its in there and has just realised it isnt his biggest fear at the moment is that he cant afford another holiday this yr, wait till he realises he cant afford one for the next few yrs. it will be all ok in the end fortunatley because he earns a good wage its just ashame she didnt realise earlier what she was doing

LJD1_2

Hiya
Just wanted to add my support to you as i'm in the same situation with my mum who has a simliar amount of debt and my dad also doesn't know. I arranged for her to go to CAB who were fantastic only she wouldn't go. I've beat myself up about her situation and people on here made me realise I can't do anything accept show her the options. I really hope she sees the light. Good luck xx

pania

Good to hear you have the cards!! I can imagine she is very scared. I was terrified before my parents found out. in the end they guessed and i had to come clean. so you think your dad has any idea or suspicions at all?