FUEGO
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 13, 2007
- Messages
- 7,746
Here's the story I promised in another thread.
DW emails me saying her sister needs $23000 immediately. Gambling debt that keeps growing because she kept playing bigger and bigger hands to try to win back to break even. This has been going on for at least a few years in large-ish amounts. She would approach us and others in the family saying she needs $6000-$10,000 to borrow short term, and then she would eventually pay it back over time. But it was usually kept discrete at her request. There may be other borrowing going on too from others that we are not aware of.
Regarding DW's family, there are five siblings and the mother and father (my bros and sis's in law and my MIL and FIL) and we all live within a few miles of each other. They are all 1st gen immigrants from SE Asia, hence much more close knit than your typical American family. The other siblings and the parents in the family (excepting DW) are fairly low income (you'd call em "poor"). The sibling with the gambling problem is married with three kids. Gambler's husband hates the gambling and its effects and it is tearing their family apart. But he's committed to helping however he can, and is probably the nicest, most honest, generous person you will meet.
The $23000 gambling debt was mostly incurred in the last month. Some weekends there were $7000 losses. 36-40 hours of straight gambling. Not seeing kids or husband all weekend. Clearly a classic compulsive gambler.
What to do, what to do. The SIL says she is done gambling, knows it was wrong, and regrets doing it. However she sounded like a crack addict trying to score a few bucks for another hit when she called me yesterday demanding the money.
There may be general bad money management going on here as well that is intertwined with the reason and motivation for gambling. They have never really saved up a lot of money ("$23000 is more than I have saved in my life", per SIL's DH). House is mortgaged up to roughly 80% LTV based on public records, which is just as bad as 100% LTV in this credit environment. Credit is probably horrible (other credit card debt that probably was thrown away on gambling), late bills, etc. Quite literally no money in the bank. The only real assets are two cars with no loans on them, worth maybe $35,000. But one is for the husband's small business that he has to have to operate. They also have a fair amount of gold jewelry. Maybe a few thousand dollars worth, maybe more.
Income isn't great either - they struggle to pay bills as is. The husband is self employed in construction, and jobs are hard to come by right now particularly in his specialty.
So why do we need a HELOC? We are the bailout arm of the family I guess. DW wants to help out SIL with the $23k as a loan, which we don't have on hand (100% equities). I just got approved for a fair amount more than the $23k on a HELOC today. I still haven't made up my mind as to what to do and whether to trust SIL. Her husband says if we give her the money, we may never see it back, and she won't learn any lesson and it will all be gambled away. Not sure what to think.
The course of action at this point was to tell everyone in the family what is going on. The intervention is scheduled for Saturday night and most of the family will be there to talk this over and make sure she is done gambling forever.
So there is a lot to decide. Do we help monetarily, and how much? Will we ever see the money again? Is giving her money further enabling her, and will it be $50k or $100k in gambling debt in a few more weeks? What limits do we place on her spending, money management activities, etc if any? How to enforce? Do I secure the $23k with a note on her car or a note on the house? Make her sell her SUV and gold?
I know the conventional wisdom on addiction problems. The addict must hit rock bottom, and they must acknowledge there is a problem. And there is no way to satisfy the addiction by engaging in the addicting activity "just a little bit". Luckily this is the first time I have seen the ugliness of addiction in any of our family.
DW emails me saying her sister needs $23000 immediately. Gambling debt that keeps growing because she kept playing bigger and bigger hands to try to win back to break even. This has been going on for at least a few years in large-ish amounts. She would approach us and others in the family saying she needs $6000-$10,000 to borrow short term, and then she would eventually pay it back over time. But it was usually kept discrete at her request. There may be other borrowing going on too from others that we are not aware of.
Regarding DW's family, there are five siblings and the mother and father (my bros and sis's in law and my MIL and FIL) and we all live within a few miles of each other. They are all 1st gen immigrants from SE Asia, hence much more close knit than your typical American family. The other siblings and the parents in the family (excepting DW) are fairly low income (you'd call em "poor"). The sibling with the gambling problem is married with three kids. Gambler's husband hates the gambling and its effects and it is tearing their family apart. But he's committed to helping however he can, and is probably the nicest, most honest, generous person you will meet.
The $23000 gambling debt was mostly incurred in the last month. Some weekends there were $7000 losses. 36-40 hours of straight gambling. Not seeing kids or husband all weekend. Clearly a classic compulsive gambler.
What to do, what to do. The SIL says she is done gambling, knows it was wrong, and regrets doing it. However she sounded like a crack addict trying to score a few bucks for another hit when she called me yesterday demanding the money.
There may be general bad money management going on here as well that is intertwined with the reason and motivation for gambling. They have never really saved up a lot of money ("$23000 is more than I have saved in my life", per SIL's DH). House is mortgaged up to roughly 80% LTV based on public records, which is just as bad as 100% LTV in this credit environment. Credit is probably horrible (other credit card debt that probably was thrown away on gambling), late bills, etc. Quite literally no money in the bank. The only real assets are two cars with no loans on them, worth maybe $35,000. But one is for the husband's small business that he has to have to operate. They also have a fair amount of gold jewelry. Maybe a few thousand dollars worth, maybe more.
Income isn't great either - they struggle to pay bills as is. The husband is self employed in construction, and jobs are hard to come by right now particularly in his specialty.
So why do we need a HELOC? We are the bailout arm of the family I guess. DW wants to help out SIL with the $23k as a loan, which we don't have on hand (100% equities). I just got approved for a fair amount more than the $23k on a HELOC today. I still haven't made up my mind as to what to do and whether to trust SIL. Her husband says if we give her the money, we may never see it back, and she won't learn any lesson and it will all be gambled away. Not sure what to think.
The course of action at this point was to tell everyone in the family what is going on. The intervention is scheduled for Saturday night and most of the family will be there to talk this over and make sure she is done gambling forever.
So there is a lot to decide. Do we help monetarily, and how much? Will we ever see the money again? Is giving her money further enabling her, and will it be $50k or $100k in gambling debt in a few more weeks? What limits do we place on her spending, money management activities, etc if any? How to enforce? Do I secure the $23k with a note on her car or a note on the house? Make her sell her SUV and gold?
I know the conventional wisdom on addiction problems. The addict must hit rock bottom, and they must acknowledge there is a problem. And there is no way to satisfy the addiction by engaging in the addicting activity "just a little bit". Luckily this is the first time I have seen the ugliness of addiction in any of our family.