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I'm pretty sure she was hoping we would just give her a bunch of money, but we are not in a position to do that right now, and she doesn't really have that relationship with her son.
helping someone who is bad with money pay off loans can be the worst thing in the world to do. my mother's cousin spent a couple of years paying his brother-in-laws mortgage and then they ultimately defaulted anyway and lost the house. its gotta suck to help make someone's payments and hurt your own financial position and then they lose the house anyway.
She has one credit card at 15% with a decent credit line available, and then for some reason opened cards at 25% and higher. Apparently, she spent all the equity from the reverse mortgage in 6 years.
As bad as it is, her only option is to not pay the credit cards. I will advise her to pay the one at 15% interest and keep that one for emergencies.
Just a FYI, You can expect the 15% card to cut down her credit line to just above what is owed, two or three months after she stops paying on the 25% cards. That credit card will see the defaults on the credit reports, and figure they are next. But they will keep it open with a credit line just above what is owed in some hope that she will continue to pay on it.
Also many credit cards in there fine print have a "Global Default Rate" if you default on one card (anywhere) they can change the 15% rate to the Default Rate of 25-29%.
So don't count on that credit card being available for the "long" term (more then 6 months).
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Aren't you moving to the mainland soon? Will she stay in the middle of the Ocean?
Sounds like you are raising a irresponsible kid like most of my sisters kids.
She is an adult, and we are not raising her. That's an odd comment.
Yes, we are moving to the mainland in a couple years, and she will be staying here.
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Just a FYI, You can expect the 15% card to cut down her credit line to just above what is owed, two or three months after she stops paying on the 25% cards. That credit card will see the defaults on the credit reports, and figure they are next. But they will keep it open with a credit line just above what is owed in some hope that she will continue to pay on it.
Also many credit cards in there fine print have a "Global Default Rate" if you default on one card (anywhere) they can change the 15% rate to the Default Rate of 25-29%.
So don't count on that credit card being available for the "long" term (more then 6 months).
Quote:
Originally Posted by Mikala43
This I did not know.
That's why I post here.
I did not know that either (about "Global Default Rate"). Thankfully, I'm not planning on defaulting on any credit card loans.
If she was going to stop paying on some of the cards is the only reason to keep paying one to have available credit? If the credit is going to get bombed financially speaking it may be better to default on all the cards and stay within budget moving forward
Oddly, she has never contacted us to get together on this issue after cancelling due to illness.
She has contacted us for other things, but not that.
Perhaps she is disappointed we are not giving her the money, but that would make no sense... the same situation will exist the next month and the next.
Or she feels bad, which was going to happen no matter how supportive we were.
She is also VERY picky on food, so I asked her for suggestions of stuff I can pick up for her and she never did that either.
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There is really only so much you can do for other people without their participation. What you just wrote should erase any lingering guilt about not doing enough for her. Some people can't be helped.
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