Dingbat Johns
New member
My parents are 1st generation immigrants and we have a hard time with our language, cultural, and generational barriers. My dad is self employed, but for the past few years the business has not been doing well and my mom just lost her job which was the only steady income they had. My dad is not fully transparent with their current financial information. For whatever reason we do not know the extent of their debt, expenses or anything financially related.
Due to previous medical situations my parents have no savings left. They have maxed out numerous credit cards, a mortgage, and possibly other loans we are not aware of. They have been rejected for home equity loans and new credit cards which would indicate poor credit.
Their only saving grace is that they are sitting on two properties (one home and one business). The business is fully paid for and the home has maybe 200k left on the mortgage (back from 1997). We have estimated the house to be worth approximately 900K before the housing market collapsed and the business property to be worth approximately 500k before the economy tanked.
It's hard for me to estimate how much debt they actually have, but they have been "getting by" with roughly $2500 a month but they still ask for money every now and then. Now with my mom's job loss they are in a bind and asking for several thousand dollars that we don't feel comfortable just handing over without knowing that they'll be able to make responsible decisions.
My dad does not have a solid background in finance but has been managing the finances his whole life. It is hard for him to relinquish control or believe anyone else can make a better decision than himself. He wants to scrape by with our help until he is eligible for social security (another 5 years).
I whole heartedly believe he is making poor choices, and even with social security they cannot survive with their basic costs of living.
What are the correct steps we need to take to properly evaluate their situation and make a smart choice on how to manage their debt/assets?
TL;DR My parents have an unknown amount of debt that is most likely in the six figures, they have no income but have two properties. What are the next steps for help in the right direction?
Due to previous medical situations my parents have no savings left. They have maxed out numerous credit cards, a mortgage, and possibly other loans we are not aware of. They have been rejected for home equity loans and new credit cards which would indicate poor credit.
Their only saving grace is that they are sitting on two properties (one home and one business). The business is fully paid for and the home has maybe 200k left on the mortgage (back from 1997). We have estimated the house to be worth approximately 900K before the housing market collapsed and the business property to be worth approximately 500k before the economy tanked.
It's hard for me to estimate how much debt they actually have, but they have been "getting by" with roughly $2500 a month but they still ask for money every now and then. Now with my mom's job loss they are in a bind and asking for several thousand dollars that we don't feel comfortable just handing over without knowing that they'll be able to make responsible decisions.
My dad does not have a solid background in finance but has been managing the finances his whole life. It is hard for him to relinquish control or believe anyone else can make a better decision than himself. He wants to scrape by with our help until he is eligible for social security (another 5 years).
I whole heartedly believe he is making poor choices, and even with social security they cannot survive with their basic costs of living.
What are the correct steps we need to take to properly evaluate their situation and make a smart choice on how to manage their debt/assets?
TL;DR My parents have an unknown amount of debt that is most likely in the six figures, they have no income but have two properties. What are the next steps for help in the right direction?