Need 3 Months Grace

Stewboy1978

Morning

Looking for advice please - My mother is around £30k in debt....At present there is more being taken out her account a month than goes in.

I am going to pay all her debts off for her - However I can't get the money until Mid Dec.

Is it possible for her to approach the various banks/credit cards and ask for some grace as it will be poaid off in Dec?

Thanks in advance.

toontastic

If she is paying off the right amounts each money chances are they won't especially if they think they will lose out on interest of it being paid off early. However you could try the worst they can say is no.

However before you pay the debt off I think your mother needs to work out why she is getting into this debt and solving that problem because if she doesn't then how do you know she won't get herself back into more debt come next year ?

Could she or you post her SOA on here and people may be able to suggest some ideas to help.

rayday2

You could write and ask them to take a token payment for 3 months see what they say. Ask them to suspend interest too.

But I agree with above its really kind when family offer to help but in the long term its not always wise. Has she thought about going on a DMP and paying the debts slowly off with interest frozen, you could help her with the paperwork but it would damage her credit history therefore helping her by making it harder to get credit.

If you pay them off her credit rate will go up and make it easier if you see where I am coming from.

Stewboy1978

Thanks guys - Problem is due to repairs on the house a few years ago - Huge loan taken out then my dad getting made redundant.

During this time money got a bit of control.

"Bailing" out at the moment will help them - They are also paying us back at x per month.

Think there are 2 loans, 2 credit cards and a store card - Even if 2 of these can be suspended for 3 months.

rayday2

Check out the national debthelpline website they have template letters on there and one should be ok for you or you can edit it to fit your position.

tyllwyd

My feeling is that before you rush to do anything your parents should talk to one of the debt advice charities. As it stands, they have the option of your help, a debt management plan, IVA, bankruptcy. Once you have taken out a loan, they don't have the other options - and you have taken on 100% of the risk of them defaulting. I know you want to help, but if they make a hasty decision now it could turn out worse in the long run.

Stewboy1978

Thanks tyllwyd...

I actually have a flat which I am going to sell - Should make around £70k on this, this is how I am paying the debt for my folks.