Overdraft called in - how does it work?

Sea_Shell

Another thought...

Is their a "benchmark" of what ratio of debt repayments to income is thought generally to be a problem?

10% ?

RAS

Not really, I recall one couple whose monthly spends were £7.5k, and they both lost their jobs. After a bit of chiding she reduced it to £5.5k. They'd doubled their mortgage buying bigger and then she lost her job. They had been earning £6.5k between them so their old mortgage was affordable and they had money at the end of the month. A bigger mortgage and a lost job and they wracked up £25k in CCs in 6 months because they hadn't adjusted their expenditure.

On the other hand on unemployment benefit owing £50 can turn into a nightmare.

My old debt crisis assessment was that those in work with an annual income's debt could dig their way out of the hole if they went hardcore. At 2.5 times annual income, the options were really limited.

If your family have £50k in debt they may be eligible for a DRO, or bankruptcy if their income is too high for a DRO. I'd suggest you refer them to Stepchange or another debt charity. 

The basic regardless is:

New basic bank account (requires no credit check). Manually transfer housing CT and utilities (switching transfers the DDs to creditors).
Default on everything else.
Get debt advice.

Hoenir

Sea_Shell said:

I just worry that I will end up being "the bad guy" in all this, if I don't just write them a cheque for £50,000, as "isn't that what families do for each other".   

They'll thank you for tough love ultimately.  Perhaps they envy your early retirement. Read on here how well your investments have performed. 

Floss

Sea_Shell said:

I just worry that I will end up being "the bad guy" in all this, if I don't just write them a cheque for £50,000, as "isn't that what families do for each other"

I think you might want to consider how they and you will react when you say "no".

Also, are your parents in a position to continue to throw their money down the drain with no expectation of repayment, without impacting their lives?

Sea_Shell

Hoenir said:

Sea_Shell said:

I just worry that I will end up being "the bad guy" in all this, if I don't just write them a cheque for £50,000, as "isn't that what families do for each other".   

They'll thank you for tough love ultimately.  Perhaps they envy your early retirement. Read on here how well your investments have performed. 

Unlikely.
Perhaps they would, if they knew!     
I hope they don't know "who I am" here.    We play our financial cards very close to our chest.

Floss said:

Sea_Shell said:

I just worry that I will end up being "the bad guy" in all this, if I don't just write them a cheque for £50,000, as "isn't that what families do for each other"

I think you might want to consider how they and you will react when you say "no".

Also, are your parents in a position to continue to throw their money down the drain with no expectation of repayment, without impacting their lives?

Badly, probably.   Hence above 

No they are not, and yes it already is. 


Anyway, sorry if that is all a bit cryptic, I'd rather not go into, what is, a very long story here.    

Thanks for everyone's help on my initial question, but I'll leave it there for now.   If things deteriorate...I'll probably be back.    Or they will pop up