Give my inlaws thier lives back!

Ghostface_2

Evening all – need some advice….

OK, the in-laws are in a bit of financial trouble. Not massive trouble, but they are 63
and 57 yrs old and currently owe about 30k on credit cards and loans. The problem is it’s not leaving them with any sort of lifestyle at the moment!

The debt is approx broken down as follows(all the actuals I will get next week):

10k on secured Halifax loan
8.2k over 4 credit cards
5.7k on 2 car loans
6.4k on 2 unsecured loans

I don’t know how long is left on the loans, but I think in the region of 3 years for each. I would envisage the unsecured around 8% and the secured around 10%. They are finding out all the details for me over the next week.

Thing is they are very head in the sand about everything – and bouncing onto different credit cards failed to work before – they have kept hold of the old ones and run them up – probably to help us get married earlier this year!

Anyway, any advice on what we should do? Current outgoing are around £1200 a month – they really struggle. They have paid off their mortgage and took an advance against the house for 15k - which is the 10k Halifax loan above. The property is probably worth around £155k. Plus he has £3,500 maturing in a policy in November which we can pay a card or two off.

What they are looking for is to consolidate everything – we will take their cards away – using the equity in the house as cover. Just one payment, say over 5-7 years. Could they get something for around £500 a month? Remortgage, secured loan, unsecured?? If it was me then at my age I would sort out the credit cards etc, but for peace of mind for then I really don’t see any other option than consolidating the lot!

Thanks for reading – any advice greatly welcome!!

RAS

Hi

Would strongly suggest that consolidating once has not worked and it unlikely to do so again. And at their ages there is every chance that they will not be able to keep up the payments.

Are they working?

Can you have a look at this http://forums.moneysavingexpert.com/showthread.html?t=107280and help them to post up their Statement of Affairs?

It may be possible to reduce their outgoings and it would help to know the APRs on their accounts. If they can change utility accounts, then use https://www.quidco.com to get cashbacks. When I looked at my mother's accounts she was paying 50% more than necessary.

If they have been in the house a long time, how much could be sold on e-bay, amazon or through a carboot sale, rahter than clogging up the loft?

Check www.entitledto.com in case.

Then see what can be done to turn the situation round

Jacks_xxx

:wave: Hiya hon,

Definitely get in touch with CCCs or Payplan.

They will help your in-laws get a light at the end of the tunnel.

We can help more if you post more details - like a SOA as RAS says.

What a sweetie you are to try and get them some help! :kisses3:

Love Jacks xxx

Ghostface_2

Thanks RAS for getting back to me- this place is so so brilliant!
They haven't consolidated before - the 10k outstanding was for a new kitchen and driveway - home improvements. They both still work - total annual income about 36k. they are both workers alright - double and triple shifts if possible. I just want them to have a bit of life back - consolidating but the cheapest possible way whether secured, unsecure or not. They are massive worriers and don't need them at their age to be this stressed!

trying-very-trying

Would it not be possible for them to "downsize". It might give them peace of mind and a quality of life.

RAS

Hi

What were the unsecured loans for?

The thing is they have a decent income, no mortgage and they have been spending more than they have been earning. On what?

They might be advised to start spending diaries, so that they can see where the money is going

And with that sort of income, can they get low life balance credit cards or 0% ones so that they can concentrate on paying off the capital rather than interest?

Not a lot they can do about the loans but if they are finishing in three years and he will be entitled to the higher tax allowance in 2 years, they might be able to clear most of the debt in that time, as long as they do not spend more.

Ghostface_2

Thanks for all the advice all!
I know I need to get all the info of them and then I'll sort out a SOA.
I'll make sure there are all the timescales and APR too.

As I said before if it was me then I would bounce around the debt until I paid it all off, especially the credit cards, but I think in this case a consolidation of some sorts would be best. They are too old and too sick with worry to keep on top of these things! I am going to sit down with them both next month when I see them (we live a fair way away) and then give cccs a call with them.

As a said thanks again - once I have all the info (poss next week) mind if you have another look then? Enjoy the weekend all!