Parents in financial bind

**disneysteve** · 05-28-2007, 03:13 PM

Tough to give an adequate answer with limited info, but here goes.

Definitely get multiple quotes for the AC. Also, see if the companies offer financing. Many do. Also find out if the local utility company has any rebate programs.

If your dad's income isn't adequate to pay the bills, either he needs to change and/or mom needs to get a job.

The only 2 choices in life are earn more or spend less. Usually, the answer is some combination of the two.

You don't say how old they are, but do they have no savings? What about retirement? No emergency funds? Doesn't sound like a great situation to be in, and behind on their taxes with the IRS as well.

**gackle** · 05-28-2007, 06:24 PM

Thanks, Steve. They are 66 and 62. Even though age discrimination is illegal, the opportunities just aren't out there for him. He did well for most of his life, but lost all of their savings to a trust scam artist about 7 years ago and then was laid off about 5 years ago. So no savings and no retirement. I'm pretty sure they don't have an emergency fund at this point either.

They have never had to lead a life of frugality and they are having difficulty transitioning. DW and I come to visit and try to turn off lights whenever we can. A/C is usually set at 75-77F.

**Daylily** · 05-28-2007, 07:22 PM

Any chance of using a window AC for the bedroom and just keep the bedroom cool? Try that option until they can save enough for the complete system?

**gackle** · 05-28-2007, 08:38 PM

I'll offer the idea, but they use so much of the house (3 bd, gameroom, study, 2800 sq ft) that they'd probably have to purchase multiple window units. I guess they could consolidate computers/bed, etc. into one room, but it all depends on how serious they are about it. Thanks for the input.

Found out some more info tonight - they can finance the A/C. It's 12 months no interest, but if they don't pay it off in that time then they get charged interest for the whole 12 months. They have looked into my mom working retail, but at about $8/hr they believe her time is better spent building their direct marketing business.

My dad said he is looking for some part time work that can bring in about $2K per month (ref Steve's "earn more money"). He/they are involved in the up and coming health and wellness industry and has done much research in it. Though not his preference he also is an expert in plastics consulting. If anybody knows of anybody in the Houston area looking for help in these fields I'm sure they'd be pleased with what he has to offer.

**Snoopy2645** · 05-28-2007, 08:46 PM

Get more quotes I replaced mine a few years ago best thing I have ever done to my house too. But anyways I got 3 quotes one around 7k & I ended up getting one somewhere else for around $2k I knew we could never afford the 7 k one well anyways. Its paid off too keeps the house so much cooler & cost less to run I mean alot less. We had a tiny one that was probably 30yrs old before.

**disneysteve** · 05-29-2007, 04:29 AM

Originally posted by gackle View Post

I'll offer the idea, but they use so much of the house (3 bd, gameroom, study, 2800 sq ft) that they'd probably have to purchase multiple window units.

This might not be a bad idea given the situation. Window units can be just a couple hundred dollars, depending on the room size. For $1,500 or so, they could get 5 or 6 window units for the main rooms they need to cool, and then just cool those rooms when necessary. Might be more energy efficient that way too, rather than cooling the entire house. Something to think about until their situation improves.

**gackle** · 05-29-2007, 05:42 AM

Well, they said the window air conditioning units are against the deed restrictions of their home owners' association. They are thinking about switching electrical providers so I had him look into Stream (a network marketing provider that gives commission on how many people you recruit). At least they could earn some income off of electricity.

Snoop, it sounds like you got a really good deal on your system. Was that replacing both the air conditioning and the furnace?

**Ima saver** · 05-29-2007, 06:15 AM

10K is too high. We build new homes and the most we have ever paid is $8K for a new system. sounds like they need to get jobs. What type of direct marketing is your father involved in?

**Lonewolf** · 05-29-2007, 12:53 PM

I just went through this

We went with someone we trusted and it cost us 7150. There were two models offered one that cost 6000 and the "deluxe" which included an upgraded Temperature control system in addition to a humidifier and a little better SEER (and yes I mean humidifier seems to be an option on some of these installs to help during the winter). This included all labor and removal.

To be honest, I only priced out one other vendor and his off came in right about the same. As others recommended to me, try to look for models in the highest SEER range you can afford, as there are potential tax breaks. Speaking from only one day of use, I can clearly feel the temperature differences in rooms that only got "partially" cooled under the old system. Keeping in mind anything would have been more efficient then the 19 year old system we had. Now to see if the cost benefits are there on my next bill . . .

Good luck.

Lonewolf

**mom-from-missouri** · 05-29-2007, 02:56 PM

That just seems too high. You mentioned they could sell the house, but really, would it sell in that area without AC??

**Fern** · 05-30-2007, 07:25 AM

I guess after reading your post the issue of your parents' AC seemed like a secondary problem. The bigger problem seems to be your parents' overall financial situation. No savings, no retirement and no emergency fund and being in your 60s and having a tough time adjusting to being frugal sounds like a truly serious situation. The last thing they need is to have to finance $10K and add more debt. I would never go with just one estimate or you're just inviting someone to gouge you.

Is your parents' marketing business a viable operation, meaning is it generating income now or is this just something he is working on in the hope it will someday generate income?

Yes, age discimination does exist; i have a friend in her 60s who's had a really tough time finding work. But i would be looking at the bigger financial picture rather than just the AC. Like possibly selling the house and buying a smaller condo and/or getting employment even if it's not in their field.

**Ima saver** · 05-30-2007, 07:29 AM

I do agree with Fern, it does seem like a secondary problem.

**cschin4** · 05-30-2007, 07:36 AM

Can they just get the present system repaired? Many contractors will come and tell you to replace the whole system for "optimal" performance, etc when in reality the old system still will work fine but maybe not quite as "efficient" as newer units. I would look to repair the old unit first. My parents had a furnace that was 50+ years old and it worked fine with some occassional tweaking.
As I get older, I no longer fall for the "you need to replace the whole unit" thing. Yes, there may be times when that is necessary but I would call a good repairman and just tell him to fix it.
What is the nature of the problem that makes replacing both the furnace and AC a necessity?

**TBH** · 05-30-2007, 10:08 AM

A 2800 sq foot house for two people sounds really extravaggant to me, even if they do use some of the space to run their business. I think downsizing is a good idea.

Parents in financial bind