(Using burner account because of my paranoia)
I've been trying to get a better understanding of my 80 year old father's financial picture, since he is going through health issues, and he and my mom will most likely require long term care soon.
Basically, my parents have about 60k in credit card debt, across 35 accounts.
They have a home worth ~200k (or however believable Zestimate is)
They both receive social security and together bring in ~30k a year (father has a small pension too)
I do not know what to do with all this credit card debt.
My father wants to do "debt settlement" with some local companies here in Texas.
I've spoken to a few, and they generally want to charge 400/500 a month for 48 months, plus 15-25% of the total debt as fees.
While that sounds like a lot, the "total cost" would be around half the cost of the current debt (i.e. 30k to "settle")
Reading on this forum and others, seems like folks just recommend to let everything go to collections and deal with the fallout one by one.
I don't live with them, so am worried they will get hounded by collections agencies etc and cause more health/stress issues.
I do have power of attorney if that matters.
I've also agreed that my father can keep 1-2 accounts, for normal use as needed, though I'll freeze his accounts so no more lines get opened (though, his credit will tank anyhow and banks won't approve either I guess)
Looking for suggestions/directions - he's totally on board to just nuke his credit, which is a complete 180 to everything I try to do with my own credit (pay off bills etc) so I'm at a loss for solid advice right now.
I've seen some non-profits like (not sure I should say the name in fear that I am shilling, but basically it's a national non-profit) so I'll give them a call too (I've been calling various "recommended" debt settlement companies that are local/Texas so far)
Anyhow, hoping to learn more and make some confident next steps too with anyones' inputs/suggestions/prior experiences.
Submitted May 23, 2023 at 03:15AM by Mission_Buyer_9893 https://ift.tt/6Ug7DN0
