mitchjav
Recycles dryer sheets
Hi... I'm 61 years old, FIRE'd since November 2018. DW is 62 - 2 daughters - a 24 year old and a 21 year old (w/ some special needs).The 24 year old is a teacher at a local high school and moved out to her own apartment in May. We helped her plan for this move, setting her up with all the $'s she needed to make it through the summer (with no teaching income) and worked with her extensively on a budget that would work for her. We gifted her a return of all the rent money she paid to us while living with us since college - including help with buying a new car.
3 months in to her new apartment life - she's in financial trouble. Not enough money to pay September's rent and about $3K on her credit card. After a long, tear-filled phone call yesterday - offered her a 3 year, 1% interest $5,200 loan to give her a clean slate. She needs to work her loan payments into the budget and refrain from all the extra spending that got her in trouble. She went hog-wild on clothing and furnishing the apartment as well as miscellaneous other things she wanted. Despite years of working with her, she has no control over her spending - shopping addiction - warned her multiple times that if she came back to us not being able to pay the rent, it would be a painful conversation - it was (for all of us). Told her that if she gets in trouble again, our only help is pack up the apartment and move back in with us (which none of us wants).
She does have about $26K stowed away in a brokerage account. It's her money, in her name, but, at her request - we manage it and don't give her access to it. Advised her not to draw on that for this situation and to take the loan instead - take the pain to learn the lesson - we hope.
Should mention that we're in the process of selling and building/buying a new home - so our finances are a bit in flux - not crying poverty, but cash flow is important right now - so, lousy timing.
She's working with a therapist on a number of issues right now (including this "shopping issue"). I also advised her to give me her credit card until she gets control of the issue.
So, any other advice? How do we get this girl on the right track?
Thanks
3 months in to her new apartment life - she's in financial trouble. Not enough money to pay September's rent and about $3K on her credit card. After a long, tear-filled phone call yesterday - offered her a 3 year, 1% interest $5,200 loan to give her a clean slate. She needs to work her loan payments into the budget and refrain from all the extra spending that got her in trouble. She went hog-wild on clothing and furnishing the apartment as well as miscellaneous other things she wanted. Despite years of working with her, she has no control over her spending - shopping addiction - warned her multiple times that if she came back to us not being able to pay the rent, it would be a painful conversation - it was (for all of us). Told her that if she gets in trouble again, our only help is pack up the apartment and move back in with us (which none of us wants).
She does have about $26K stowed away in a brokerage account. It's her money, in her name, but, at her request - we manage it and don't give her access to it. Advised her not to draw on that for this situation and to take the loan instead - take the pain to learn the lesson - we hope.
Should mention that we're in the process of selling and building/buying a new home - so our finances are a bit in flux - not crying poverty, but cash flow is important right now - so, lousy timing.
She's working with a therapist on a number of issues right now (including this "shopping issue"). I also advised her to give me her credit card until she gets control of the issue.
So, any other advice? How do we get this girl on the right track?
Thanks