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Financial issues
i am lost as to what to do. I am 18 years old, i live with my parents and two brothers in a small house that we are renting. My parents are over $20,000 in debt and have been for over 20 years. They work good paying jobs but about 3/4 of the money goes to bills and rent. Theyve basically given up paying off the debt and keep making purchases without any care. what can i do to get them to realize that they cant just give up? they are going to be retiring soon but with all this debt i dont know whats going to happen..
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Have you spoken to them about simply filing for bankruptcy? My husband did it before we got married and after five years its not even on your record anymore, their credit they'll be able to restart if they want or just swear off credit cards all together. For them that might be the best option.
Tell them that all the debt would be erased in five years, and if they have nothing to show for it (like a house they own or a car thats over a certain amount and older then 5 years) then they have nothing to worry about. Nothing can be taken from them and you all will just resume your normal lives like nothing ever happened. The only down size is that you cant buy a new car right now, or do anything that requires you to have credit (which for them is probably a good thing anyway) After which they can take this time to think about how they could have better spent their money. Its a chance to start over.
All my husband did after was call to make sure that the bankruptcy had been removed and would not show up on his credit. He did this online without any help and it was relatively easy to do.
I agree with dragon fly about spending less during this time, saving, and checking out thrift stores more often (maybe not ALL THE TIME) cause i feel that everyone deserves to treat themselves to something nice and new every once in a while. Even if its just a new shirt or a decent pair of shoes, but if you go to thrift stores that are in the better parts of your town then you'll be more likely to find better quality or new to NEW condition stuff!
My hubby makes good money with his job, and we still choose to shop thrift stores as much as we can, only we go to the richer areas of town for this. I have a huge sectional couch i got for 70 bucks thats in brand new condition and WHY do you ask? well i found out through the staff that someone rich had passed away and the persons family decided to donate alot of their things to their store! these kinds of things happen all the time all over the place. So just continue to browse the thrift stores, returning every so often to see what new things they have and eventually youll find some good stuff!
Go with your mom when she food shops. start going to grocery stores that are cheaper, not places like ralphs or vons. Try food 4 less or the canned food store. Buy more things to make at home, make large stews or batches of pasta that you can store and eat later.
Try brewing your own iced tea in large batches so that your only paying for the tea bags themselves and maybe the fresh water (if you buy bottled water that is)
Start recycling your cans. Go through you whole house with a trash bag and start crushing and saving the cans until the bag is full, then take it to be recycled so that you can get some extra money for that.
Sell anything you guys dont want or need thats just kinda around the house and/or taking up space.
and thats just the tip of the iceberg that i can help you with right now. If you need more help feel free to pm me, these are just some of the ways my family lives.
good luck ; )
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Theres nothing you can really say or do. Many are floundering in the current economy and either borrowing money or carelessly spending what you don't have and not learning to be patient and save up money is a problem that many besides your parents have. Pretty much most of society has forgotten the financial principles that our great grandparents had. It was a different time and we were raised to save up rather than use credit....which means being patient.
The problem is a society that has learned they can get instant anything...fast food, faster travel, faster communication with phones, cells, computers. We are bombarded with ads of all the things we could be enjoying now if we bought them and then all the ads for credit card companies so we can get the things we want now with the intent to pay later. But who is really going to be diligent to pay credit card payments if they couldn't put those same amounts monthly into a savings account. The cost of living is so high compared to what we earn that many work two jobs, and only use their home as a place to sleep as they are never there, just working to be able to exist and that can become very discouraging to the average to lesser income person.
So unless you can fix the governments financial system and spending practices, and living costs of the economy, then theres nothing much that can be done other than to do what others keep doing, cutting down the outgoing expenses, living in smaller cheaper places, driving older cars or using bus, buying all your clothes second hand and getting furniture and household items 2nd hand or free through places like free-cycle, a recycling of items in good condition, learning to cook from scratch, no going out to eat, and using food banks, food stamps if one qualifies, and Obama care, and so on. I've had to live that way all my life. You are living with your parents because in todays world, it is too expensive for you to afford an apartment on your own. In many cases, it is still too expensive for two people your age to afford to keep an apt. I know of families that no longer can own their own place or rent their own and have friends and family or two familys living in one place simply cus they can't afford one on their own. I would say, learn to do what you can to be frugal, save lots and spend little, only do any schooling that you can afford to pay for with money you earn, or grants, but avoid student loans as you and the parents can't afford that. Start checking out the free-cycle places on line first before buying anything at full price, even if its just to get a new purse or pair of shoes. I always check out the discounts racks and 2nd hand stores before I buy anything at full price brand new and even then, shop stores that have quality for discount prices. Save well, and give a little money to the parents to help cover your room and board. When they retire and have no money to live on, they'll be in my spot...waiting to get old enough to qualify for senior housing or housing for the poor, based on on a portion of your income and having to work til the day you die cus theres no such thing as full retirement for the working poor
Yes, your parents may be overspending, but many dont get ahead and its not cus they are lazy. Many have worked hard their entire lives and have nothing to show for it cus the cost of living has always been higher than what many people earn. Just start looking into what it would cost, what kind of income you'd require to be totally self sufficient on your own at your age and you'll see how tough it is. Then again, you could look to marry for money, instead of love unless you can find both and your husband could afford taking care of your parents as they age and retire.
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