Hey Money Minder,
So, here’s the scoop. My sister and her husband are in a real money pickle, and we’re brainstorming ideas to bail them out. They’ve never been the best at handling their finances, to say the least.
Basically, my brother-in-law runs a small contracting gig with a couple of guys who are actually freelancers. A few years back, he took a fat $70k check from his cousin for a home reno project that never took off due to permit woes. Now, the cousin wants his cash back, but it’s long gone on both business and personal expenses. On top of that, my brother-in-law’s slacking on paying his crew and has racked up a load of credit card debt.
The cousin’s chill about a payment plan, but his lawyer dad’s all about the cash ASAP.
Our mom’s thinking of lending them $30k, but we’re worried she’ll just kiss that cash goodbye. Selling their place and hitting the reset button might be a smarter move.
We’re on a mission to dig my sis and bro-in-law out of this financial mess. What should they tackle first? Is selling the house a good move to clear some debt? And how should they tackle this repayment game plan? Any wisdom you can drop on us would be epic.
Catch you later,
Worried Sibling
Response from THE MONEY MINDER:
Hello There,
Dear Concerned Family Members,
I understand the predicament your sister and brother-in-law are facing, and it’s commendable that you are seeking the best way to help them navigate this challenging financial situation. It’s tough to see loved ones struggle, especially when it comes to money matters.
Given the circumstances described, it sounds like selling their townhome could be a viable option to help alleviate some of the financial burden they are facing. This could provide them with a lump sum that could be used to repay the $70k deposit to the cousin and address other outstanding debts.
In terms of the repayment plan with the cousin, it’s positive that they are open to a monthly arrangement. This can help ease the immediate pressure while allowing your brother-in-law to work towards repaying the full amount over time. It’s essential to have a clear agreement in writing to avoid any misunderstandings and ensure both parties are on the same page.
As for your mom wanting to loan $30k, it’s understandable that you have concerns about the likelihood of repayment. While it comes from a place of love and generosity, it’s crucial to weigh the risks involved and consider if there are other options that may be more sustainable in the long run.
Ultimately, the priority should be to address the root causes of their financial challenges and develop a plan that sets them on a path towards financial stability. Selling the townhome, creating a realistic repayment plan, and perhaps seeking professional financial advice could be steps in the right direction.
I hope this advice provides some guidance on how to approach this situation and support your sister and brother-in-law in finding a sustainable solution. Remember, sometimes the tough decisions now can lead to a brighter financial future.
Best wishes,
THE MONEY MINDER
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