elderly parents credit card balance they will never be able to repay

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hi there, hoping someone out there will have some knowledge of how the credit card companies work and might be able to advise.

My very elderly parents have a 7k credit card debt - only recently discovered it but I think they've had it for about 20 years - they took a sum of money out when they moved house when they retired.

They are only (and have always only ever) paid the minimum repayment each month (currently about £160 of which £130 is interest).

It's not a debt as they are repaying but they are only repaying by using benefits that should be used for something else - ie my dad's attendance allowance that should be paying for a carer. So it is affecting their quality of life, causing them (well, my mum - my dad has dementia and is unaware) stress.

What if anything could i reasonably expect the credit card co to do? They will never repay the balance before they die (in which case the balance would presumably be written off) so is it in the credit card companies interests for us to make them an offer to pay it off at a reduced rate??

anyone been through similar? I will also post in Elderly Parents section. i rang a couple of advice lines and tbh they were useless because it's not yet a debt. thank so much in advance.

I'm not an expert, but in this situation, I would ask the cc company to freeze the interest, so that they can start to make a dent in the "debt".

I would also ask how they were able to obtain so much credit if their only income was a pension. Could it have been misselling? Have you called Age UK for advice?

thank you for replying. Yes, that is what i would like to ask - my dad is likely to be going into a home in the near future and then they will sell their house, so would then have some money to pay it off.

The account is closed - ie they don't have a card for it - i don't know how long that has been the case for - years i imagine. It was presumably the same credit card account they had when they were employed and it just kept going.

I used to work in credit card services. In that situation the company would more than likely write the debt off. Credit cards alone (without other outstanding debts) rarely go to court or seek repayment where there is no means to repay

If there is equity in the house then there's the means to repay.

Your mum needs to contact the credit card company and ask them to freeze the interest - bear in mind that she will be required to fill in income and expenditure to prove why they can't afford to repay it. When the house is sold they can repay it out of that money, sadly the debt wouldn't be written off if it wasn't paid when they die if there is any assets in the estate (house, savings etc) it would only be written off if no assets.

Could you switch it to a 0 % interest one if they won't write it off ? Then at least the money they are paying will reduce the balance.

thanks everyone - you've all been really helpful.
I have no problem it being taken out of the assets when they die, i just know they can't afford to keep paying that monthly minimum repayment. My mum is using my dad's attendance allowance to pay it, when that should be going to pay for some outside help to take the burden off her a little - he is 91 and has dementia and she is 80 so his care is becoming too much for her.
I don't think we can transfer to a 0% sadly as no one else would take them on.
Have done a budget for them and am going to contact the cc company asking them to freeze the interest for a period of 6-12 months until they sell and downsize and have some equity. thank you all.

Good luck, they should be fine. Just be aware that if it will need to be your mum who contacts them - she can speak to them and give them permission to deal with you in future though :)

www.payplan.com

Give them a call. Their service is for free. I had a problem some weeks ago and they gave me some really good advice over the telephone.

An alternative would be equity release, might be worth looking into?