How do you shake off money leeches?

10 January 2013

Q

A friend of mine entered into an agreement to release equity from her home as she had financial difficulties. She then sold up and downsized in an effort to repay the equity release firm but it has insisted it had a share in her new home and she had to buy something it would agree to. Is there any way of ridding oneself of these leeches?Can I give my friend a glimmer of hope as it is preying on her mind and affecting her health?
From
GT, Dereham

A

It is hard to offer any clear advice about your friend's situation without more information, but it sounds like the terms of the arrangement have meant that the sale of the home did not yield enough to clear the outstanding debt.

This has left her in a difficult position and so she needs to get a better picture of what can be done to clear any ongoing obligation. Sitting down with someone who can help demystify the terms of the deal will help in formulating a plan of action.

I would suggest she contacts an organisation such as Citizen's Advice (citizensadvice.org.uk) to work out the best course of action.