Update on my parents' (then) very messy financial situation

[almostalumping]

Hi Everyone,

I posted a little over two years ago for help with my parents' financial mess. My dad had always taken care of the finances (my mom didn't even know how to use a computer), but he became disabled and lost a lot of his short term memory. My mom suddenly had to take over the finances with no experience or help. They had previously been debt free for years, but three years ago my mom found herself in $90,000 of debt. She then came to me, her now 26 year old daughter, for help, and I've been managing their finances.

Two years ago when I posted here they still had $75,000 of debt. You were all extremely helpful, and I wanted to give you a quick update.

My mom is now 57 and my dad is 64.

Total Monthly Income:
then: $4,415 now: $5,873

Dad's retirement fund: (still haven't touched it)
then: $335,000 now: $371,048

Mom's retirement fund:
then: $4,000 now: $15,961

Debt:
equity loan (6.24% fixed): then: $42,761 now: $0
equity credit line (8.25% variable): then $23,110 now: $0
life insurance policy for my dad in default: then: $6,800 now: caught up
dentist bill: then $1,600 now: $0

As of today, they are completely debt free!!!!!

Thank you so much for all of your help!!

[irmanator]

Thats great!!

[Joan.of.the.Arch]

Paying down $90,000 in three years would be remarkable for most people. You and your Mom and your Dad must have great relationships to have worked this out together. Does/did your Dad have, despite his short term memory loss a supportive personality and ideas on how to proceed generally? Anyway, you have done a very good thing to help your parents that way. I'm sure your parents love you.

Yay, debt free! Yay, ditching all that kind of worry! Yay, family!

[almostalumping]

Paying down $90,000 in three years would be remarkable for most people. You and your Mom and your Dad must have great relationships to have worked this out together. Does/did your Dad have, despite his short term memory loss a supportive personality and ideas on how to proceed generally? Anyway, you have done a very good thing to help your parents that way. I'm sure your parents love you.

My parents and I have always been very close, but we really banded together to get this done. My dad was very supportive of whatever plan my mom and I came up with. None of us knew what to do at first (especially me since I was 23 at the time!), so I started reading this forum, watching and reading Suze Orman, and reading whatever else I could get my hands on about personal finance and investing.

I still can't believe how cooperative my parents were. I had them on an extremely strict budget, and they stuck to it the whole way. My mom would call me to ask before buying anything other than groceries or toiletries.
For the past year they have been using a microwave with a broken handle that they have to pry open with a butter knife. They're very excited to now be able to buy a new microwave!

[LuxLiving]

You should be VERY VERY proud of yourself. You did an awesome job.

[creditcardfree]

Congratulations to all of you!

[ceejay74]

Wow, that's really inspirational. Thank you so much for coming back on to share your success story!

[Broken Arrow]

This is great. Glad to hear it!

[Merch]

It's always great to hear inspirational stories.

[bjl584]

What did your Mom do to end up with $90,000 in debts? About ten years ago my Mom got in trouble with credit cards and found herself with about $40,000 in debt and nothing to show for it. Most of the debt was from interest and cash advance fees. She had nothing tangible to point to for all the debt that she had racked up. I'm curious as to the details surrounding the debt that your parent's found themselves in. Congratulations on turning things around by the way.

[LivingAlmostLarge]

Wow great job with your parents. I wish mine were so cooperative!