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[gotrocks]

Good Morning Everyone,
Thanks in advance for all comments suggestions.......

I have a niece that has never been able to manage her finances.

She has called again asking for help. (more money)

My question---- What experience have you had or what do you know about any of these "Debt Relief" companies.

I've read several warnings and realize there companies that are ready to give "relief" but all they do is realive one of their money.l

Do you know of any reliable place to send her that is on the UP & UP?

Thank$ , Norris

 

[midlf]

Around here (SE WI) United Way funds the UP&UP credit counseling services. Check with UW for the name of your local reputable agencies.

 

[DieselPower]

It's true that most "get out of debt" places are just in it to make money. They are businesses afterall. Like midlf said, look for a non profit group like the United Way that has a counseling service.

 

[Jagmandave]

Or give her a little "tough love" and let her figure it for herself..........

I assume you've already tried to councel her?

I wish you luck tho, kids have no interest in listening to us old folks, but they sure run to us to bail them out when they mess up their own lives, don't they?

 

[RonMar]

It is very simple, tell her to cut up her credit cards and not to spend what she dosn't have in the bank...

 

[Jimbrown]

It is very simple, tell her to cut up her credit cards and not to spend what she dosn't have in the bank...

Well no it ain't quite that simple. When you got all the utility companies threatning to cut you off. The rent due, a car payment you got to make inorder to get to work and maybe some doctor turning you over to blood sucking colection agency that simply does not work. There are just times you got to help in some way even though you know you will never get it back. But saying that you got to be sure what the money goes for. Maybe even to actually paying the bill to be sure it does not get diverted to unnecessary items. $300 cell phone bills and stacks of DVD's would be no gos. And you don't do it too many times. One of my sisters went thru this sort of thing mainly due to a god aful worthless husband. But now she is fine and doing better than most people.

 

[Jstpssng]

Well no it ain't quite that simple. When you got all the utility companies threatning to cut you off. The rent due, a car payment you got to make inorder to get to work and maybe some doctor turning you over to blood sucking colection agency that simply does not work. There are just times you got to help in some way even though you know you will never get it back. But saying that you got to be sure what the money goes for. Maybe even to actually paying the bill to be sure it does not get diverted to unnecessary items. $300 cell phone bills and stacks of DVD's would be no gos. And you don't do it too many times. One of my sisters went thru this sort of thing mainly due to a god aful worthless husband. But now she is fine and doing better than most people.

As long as she can go to someone for money she'll never get on track. Let her power and phone get shut off, maybe she'll start to catch on.

A nonprofit counselling service may help, but first she must be willing and able to write and stick with a realistic budget which allows her to pay on her bills every month while still covering her necessities.

 

[midlf]

There is a saying that goes "the lesson keeps getting repeated and each time it is more painful until you get it." Maybe it's time for the niece to undergo the "pain" required to learn the lesson.

I have a niece that has borrowed $ from us. At the time she asked for the loan she had a repayment method/plan in place. She has always repaid on time or ahead of scheudle. She can get a loan for any amount from us any time. Same thing with one SIL. Then there is the nephew that we would not give anything more than pocket change.

 

[meledward23]

It seems to me that "Financial Peace University" Author is Dave Ramsey may be helpful. It may not be 100% what she needs in the short term, but for the long term she obviously needs something, especially if you have helped her out before.

She needs to have a garage sale and sell what she has that she doesnt need. Liquidate any assets that are worth more than owed if she can manage it. She needs to learn the hard way IMHO. Typically that is the way most people learn, the hard way.

A quick fix won't help. She will be right back to this again. It's like being overweight. A 30 day diet isn't going to help unless you are just trying to lose that Christmas fat. If you are losing years of fat it takes a lifestyle change. Same thing with money problems. She needs to realize the need for lifestyle change. Dont enable her to continue the current path. I of course say that without all the details, but when you get to Utilities, Car, Rent, etc. it's probably fair to say, lifestyle change is needed.

My best friend came to me with the same question last October. His Mom came to him for the second time that year. She needed 1500 dollars to pay a few bills that she was short on. He was in a dilema because the previous 2000 4 months earlier was supposed to fix things. She got evicted in Feburary. So she is living with him anyway and he is out 3500. Point is to illustrate, bailing out doesn't help. Try getting her "Financial Peace University", it costs some money, but maybe with some hard work, and WILLINGNESS on her part to change (without it there is no point) things can turn around.

Good Luck

 

[KaiB]

I'm a huge Dave Ramsey fan. Audri's so tight with money we have never had problems, but I can be loose.

Ever since I began to listen to Dave (every time I'm in the truck at the right time), I think hard about spending the first penny...he's actually made a difference in my life!