Bank loan in mid 80’s

[jandalsinsummer]

So a relative has got herself into some financial strife. I am trying to help. She lives off basic state pension and attendance allowance. She has a very small amount of savings.

I am furious to discover that her bank (same as mine hence even more furious) loaned her 10k 2 years ago.

1/3 of her income is going on paying off this loan and her credit card (another story)

I am cross with her and so furious with the bank. Just venting on here.

How much equity is in her home?

Thanks for all the responses.

Sorry just to clear up a few things she has 1 bank account into which her state pension is paid, attendance allowance came after the loan. Credit card debt predated the loan. Clearly the bank can see her income and outgoings. Her largest outgoing is loan payment, next council tax, next credit card everything else is a step change smaller. Except for some bizarre reason her phone bill which is huge, my next thing to deal with!

she is ‘economical with the truth’ with family I expect because she is ashamed/overwhelmed and doesn’t quite know what to do. I don’t for 1 moment think she would have lied to the bank to get a loan.

I’m not helping her sell her house, my view is that that would be a disaster, she has a manageable small home and small garden where she is surrounded by friends and they all totter about in and out of each others houses for coffee, gossiping about their grandchildren! She lives in a pricey part of the country so would need to downgrade significantly or move way out of town to free up enough money to make it worthwhile (she doesn’t drive). Moving means a 1 bed flat so no one can come and stay, moving away from friends so loss of social contact and loss of independence due to increased distance from services.

The equity in or value of home is irrelevant, the loan is unsecured as far as I know (there is no findable paperwork for ANYTHING!) whilst I understand the bank feels secure knowing she has a home, no one’s home should be at risk over a silly loan for ‘bits and pieces’

Thank you for all your help, we are dealing with credit cards tomorrow (And I need to get on with it and call the phone company) we are still discussing what to do about the loan. I’m team complain!

Is it a secured or unsecured loan?