INTRODUCTION
Hello I'm new to Reddit, I'm sorry if I posted in the wrong place. I couldn't find a subreddit for family finance.
I'm in my 20's and renting a place. Currently I can support my own lifestyle with the occasional splurge. I don't own a home yet but plan to in maybe 5 years when I want to start a family.
THE SITUATION
My parents are approaching 60 and have over $300,000 in credit card ("CC") debt, along with maybe $100,000 outstanding from our family home. They have subscribed to a debt management program that consolidates your debt and pays it off for you, but you'll have to pay a fixed amount each month. There are less than 10 years left. They are living a frugal life and paying off the installments with their salary, which may stop if their employer decides to release them after retirement age.
I need to mention that the $300,000 debt came from being scammed and huge loans to bail out friends that later vanished. So, this didn't happen from irresponsible spending, just my parents misplacing their trust.
Two years ago, my parents proposed that I "purchase" the family home through a housing loan for $400,000. They would use the proceeds to settle their CC debt, and, they promised to pay the monthly installments on my behalf. I'm assuming I would take over the payments once they no longer have an income.
I have refused multiple times and suggested that they downsize so the debt would be more manageable. However, my mum had always refuted that the home is nearly paid off, we don't have to go such lengths, and why should we lose our home? But from my understanding how are retirees supposed to pay off the $300,000 then?? :$ If you have no income aren't you supposed to liquidate your assets?
Optimistically speaking it could all go well, but there are so many ways it could go wrong. Buying a house that I cannot afford, losing my ability to get a loan when I really want to settle down, having to care for my parents when they get super old, etc. I can't abandon my parents but I also don't want to ruin my future.
I also have an unemployed older sibling (30/M) still living with my parents, I don't know if it's relevant.
TL;DR: Aging parents have $300,000 CC debt + $100,000 housing loan balance, may get released from employment after retirement age in a few years, wants me to "purchase" the family home for $400,000 to pay their debts. Can I hear your story or get some advice for options?
Submitted May 27, 2019 at 01:40AM by cress_cress http://bit.ly/2K47j8q
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