Hi PF,
I need some advice for my parents, father is 68, mother is 59. I will try to make this as cohesive as possible, but please forgive me if it's all over the place. And because I'm still combing things over, there are going to a lot of estimates at this moment.
I recently moved back in with my parents to save money and to help them by paying rent. I forced them to look over their budget since they never seem to have savings, and, honestly, at first glance, I don't know how they have been making it. Tonight, we sat down and I introduced them to YNAB and that's our starting point, but there's still a bit we have to go through. They've seen the issues, though, and seem to be serious about working on it.
That being said, with their current income (not including what I'm paying in rent), I think they'll continue to be in the red for a few months. My rent payments will help, but I don't know how long I'll stay here. I'm not close with my family, to say the least. To add to that, my dad's job will be closing at the end of the year. He will get SSI, but he already has been receiving that and even still, they're still in the red.
So, the general estimates are:
Income: $45,000/yr combined income + SSI.Post job loss: $25k (he makes $20k-ish, net)And I'm currently paying $600 for my room from them, though I'm an unreliable variable in this situation.
They have $140,000 in debt to various credit cards and loans, not including any medical payments/debts.
The 3 biggest culprits are:
House: $88k remaining - $1052/month (I think I saw a 4.5 interest rate, but I didn't really catch the details--just a glimpse of the account).Dad's car: $17k ~$300/monthMom's car: $26k ~500/month
I have already informed them that they will have "most likely" sell one of their cars at the end of the year (they were stressed after seeing the numbers. I put it gently. As we go along, I will absolutely push for them to sell a car). I don't know their payment plans either, but I'm pretty sure they got the worst rates/terms/etc. as far as interest goes for their cars, too. I have a brother who said he'd potentially be willing to help, especially if it allows them to keep the house, though he's shit with money, too.
They declared bankruptcy a couple years ago, too, as I'm sure that will be pertinent information. I have no idea what their medical debt looks like, but we'll be looking at that over the evenings of the next few days. My mom asked me my opinion about whether they should take out a home equity loan, but I honestly know shit about that. They'd like to keep the house, and it'd be nice for them to. But, ultimately, I just want my dad to enjoy life for once so however that can happen would be cool. Sorry these are estimates and all that, but as we continue to work on it, I just want to know what direction to point them to. So. Any ideas on how to tackle this moving forward?
TL;DR: Parents $140k in debt. Biggest factors are house, and two cars. Dad's losing job at the end of the year. Current income: $45k. Post-job loss: $25k. What should they do?
Edited: Slightly more concise, haha.
Submitted September 29, 2020 at 09:53PM by my-nips-hurt https://ift.tt/3igV85A
