cc payoff question

[knitnmom]

Okay, my in-laws, who are retired and on a fixed income have a ton of debt and they are unable to pay all their bills and eat.

Here is my question: If they only send, say $10 to each creditor and a letter stating that this is all they can afford and here is our plan to pay our debt, etc, so they can pay off one bill at a time(snowball), would this be okay???

My husband and I were under the impression that they should pay for shelter, food, meds and living needs before they start shelling money out to cc companies. They do not own anything, so there is nothing the creditors can take.

Any thoughts would be appreciated.

[Denvergirlie]

Of course they take care of their house, food and meds before anythign else, the 4 walls come first. Then the creditors.

They can figure up a pro rata letter that tells each crditor how much debt they have and figure up a percentage of the "left over" money to pay each creditors.

Now, the creditors still have every right to come after those debts, so they very well might be get sued and have to go to court, but it's not going to happen over night.

You can read a blurb about this here:
http://www.daveramsey.com/etc/askdav...entItemId=8557

I would suggest you get them Dave Ramseys book the Total Money Makeover, either give it as a gift at X-mas of check it out from the library. Are they willing to make it work, or are they in denial and ignoring the issue? How did they get so much debt? Have they changed the behavior that led to this?

good luck

[knitnmom]

Unfortunately, they are in denial. In their lifetime they have filed bankrupcy twice and they continue to rack up credit card debt trying to keep up with the Jone's. They are in their 80s and own nothing. Over the years my hubby and I have given them books and offered advice. My mother-in-law worked as a bookkeeper for years and thinks she "knows." It's sad that they chose to live their "golden years" this way, but it was/is their choice.

[Denvergirlie]

Then there is nothing you can do for them. If they choose to live their lives this way, you really have no way to help them.
As sad as it is, do nothing for them, if you want to help if they are in a bad place, bring them some food for the cupboards, but do not give them money.
They have made their choice, you have to stand aside and let them live their own lives.

I know it's easy said that done sometimes, but if they don't want to change, there is nothing you can do to really help them.

The one silver lining, you can learn from their mistakes.

[knitnmom]

All the siblings are in agreement and no one is giving them any cash. We all agree that this is there choice and only they can get themselves out if they so choose. It's sad, but we didn't choose this for them- they did.

That is one good thing- we have all learned from their mistakes and do not want to end up like that at their age!! (at any age!)

[missmanny]

what a sad situation.

It can't be easy to watch this but you are doing the right thing by not giving any cash.