Managing retired mother’s crippling loan

Gaia405

My mother took out a loan with BOS for £10,000 some years ago whilst still working. Now retired and has state & widow pension only. Repayments are £200 pm inc interest. Can’t remember APR but I was shocked at how high it was. She is struggling to cope. BOS said no other options. Any ideas of how to reduce repayments? She has no equity or savings.

[Deleted User]

If she cannot pay more towards the debt, then restructuring it into a cheaper loan is the other option. However it sounds as if her income probably won't support a second loan.

First thing to do is to find out how much she owes and what the rate is.

The DFW board will also give good advice on cutting costs and budgeting.

jimbo747

Dont pay it then, or make token payments, they can't take what she hasn't got. Not like she'll be desperate to get more credit in future.

John-K_3

Gaia405 wrote: »

My mother took out a loan with BOS for £10,000 some years ago whilst still working. Now retired and has state & widow pension only. Repayments are £200 pm inc interest. Can’t remember APR but I was shocked at how high it was. She is struggling to cope. BOS said no other options. Any ideas of how to reduce repayments? She has no equity or savings.

BOS said no options other than what?

To reduce repayments she could sell some possessions and overpay, or could she perhaps go back to work?

How was she planning to cope when she chose to retire?

ReadingTim

You could take out a loan in your name at a lower rate and repay your mother's loan. Your mother could then repay you instead of BoS.

If you don't want to subsidise or support your own mother, why should the bank?