Elderly mum in debt

[Mounjarone]

Hi,

Ive just discovered that my 77 year old mum is deeply in credit card debt. I feel awful that this has happened to her, however she’s done a good job of hiding it!

Over the last 3 years she’s taken out cards which she’s maxed out on living costs, before applying for another.

im trying to help her get this sorted. I feel angry that this was allowed to happen. She’s an elderly lady, widowed living on a state pension, plus a small private pension. Why the f**k did they keep lending her money. I feel so angry about it all.

How did she apply for the lending?

Online I think

If she applied online it will be difficult to come to prove that she shouldn’t have been given additional lending but they should have still done affordability checks. If you have proof that they have been irresponsible lenders you may be able to go to the card providers that were opened later and get some written off

The most recent lender allowed her borrow 6.5k despite already having loads of cards that were being paid at minimum payment level. I can’t believe that the credit check didn’t flag her as high risk!!

Try contacting Christian’s against poverty or cab for help

You can ask about each lender’s vulnerable customer policy. They have a responsibility to avoid such situations although she may have overridden any concerns and flags they raised. Why is she living beyond her means? Does she have full capacity?

She has all of her faculties but she’s not financially savvy and suffers with her mental health. She was borrowing in desperation but surely it shouldn’t have been allowed

Step change might be worth talking to here.

Yes I’m going to do that with her. Thank you

Can you look up Complaints policy of each lender? Follow it and take to Financial Ombudsman if no satisfactory outcome, Your issue is twofold , the irresponsible lending by the cc companies and helping your dm deal with the debt and budgeting.

Please get her to speak to Age Uk or CAB about a benefit check. She may not be claiming all she is eligible for like council tax support or Pension credit.

Once you've got the full picture of all her debts, go with her to one of the debt charities such as StepChange. They will help sort out getting some of it written off. They will also know about her rights to care as a vulnerable customer.

Does she own her own home?

Yes she does.

I recommend Christians Against Poverty. They will help with managing her debt. Don't be concerned about the Christians label they will help her unconditionally, and no one is going to give her a hard religious sell.

Does sound like irresponsible lending but you should also find out whether she's been honest about her income and outgoings when applying for the debt. How much is the total debt?

Also has she been using the money for essentials or for 'lifestyle' spending? You say she's hidden it well but have you noticed what she's spent the money on? Did she previously have savings that have run out?

Maxing out 'loads of cards' in a short period when her income should cover her needs and leave a reasonable disposable income assuming she owns her home outright, sounds like a spending spree. Does she have a diagnosed mental health condition or has she just been 'spending on nice things to cheer herself up'?

You'll also need to help her deal with the lifestyle change she's going to experience now the credit card money won't be available. Help her go through her account to check she's not paying for a load of things she doesn't need and her insurance etc is a reasonable price.

Is she still in the family home? Would downsizing to somewhere cheaper to run (lower council tax and utilities) so her disposable income will increase be an option, plus she might release equity to pay the debt off and then top up her income.

I'd also check she's hasn't been borrowing to cover having been scammed out of income and savings. She wouldn't be the first.

Not the point of the thread but my mother who's close to 77 would have a fit being described as elderly!

If 3 years away from 80 isn't elderly, I don't know what is!

I think it depends on the person. I am near that age and no one would describe me as elderly. I was only talking about the old ladies at a group I go to this morning and then I realised that some are younger than me.

@retirementislooming my nan is 94 and I think only in the last few years would she have described herself as elderly
@Rocknrollstar agree it totally depends on the person