My Parents

Friday, April 18, 2008

So, being the sneaky daughter I am, stayed in the living room while my parents were speaking to the Line of Credit Lady (I'm sure that's her real title...) to get a better idea of the kind of debt situtation they are in. They aren't super open with their finances, and I guessed a lot in my previous post. But, I now have the final tally, just for you:

CC Debt
VISA - $8,000
VISA - $3,200
Total: $11,200

Value of 2nd Home - $560,000 (on the books, I doubt they could sell it for that)
HELOC on 2nd Home - $280,000 limit (pretty sure it's maxed out, they put the mortgage on it)
Currently rented, brings $1,225 in rental income, enough to cover HELOC min payments

Value of this Home - $520,000 (again, on the books)
1,200 sq feet
Finished Basement
1.5 car, detached garage

Property tax is $1,865

My mom's current income is around $50,000 a year, and my Dad has had no income to speak of this past year. They applied for a $150,000 line of credit on our current home.

So, while my parent's situation isn't as bad as I had previously thought (I thought they had a mortgage as well as the HELOC), it's not great. I can only hope that when they sell this home they can pay off both lines of credit and have a fresh slate. That way, any money that they make from the sale of the second home can go towards building a retirement home in Nova Scotia.

And, yes, if you wondering, they do have retirement savings. Now, I'm not sure just how much, I did hear them talk about it, but I don't remember. I'm sure it's not as much as they should have, but it's something.

This revelation only makes me so unbelievably determined to use money as a tool to accomplish my goals, not a means. Does that make sense? Hah. Probably not. I just never want my money to own me, like it does to so many people I know.

Given that this blog is annonymous, and you don't know who my parents or friend's are, and since H has given me the access to her bank info, I may just show you how scary it is. It's like watching a train wreck in slow motion. She's, as we like to say here at the police service, 'circling the drain'. This means that she's so close to sucumbing, but hasn't yet. (We usually use this term to refer to a victim who is almost dead, but hasn't died yet. It's gruesome, but you wouldn't believe the crap I hear here. You get used to it eventually.)


Fabulously Broke said...

I'm the same parents are totally in the same sort of situation in terms of finances + being clueless

Anonymous said...

That is great that your parents are so open. My mom would NEVER tell me anything!

OK, that phrase is a little icky!