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Bum Asks for a $15k Loan
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February 3rd, 2010Family, PF Lessons, debtNovember 2009
I go home for Thanksgiving and my parent Bum and I have a face-to-face talk. Bum wants a loan to pay off all the credit card debt. By this time, Bum has estimated the figure to be about $15k and the interest rate are in the high teens but no specific figures are disclosed to me. I get frustrated about the lack of disclosures provided to me as a prospective lender, but I realize that this was a great opportunity to get rid of the Other Child from Bum’s financial picture once and for all.
So, I go in for the (financial) kill:
My Offer to Bum
- (1) $15k loan with no interest rate with repayments according to an agreed schedule.
- (2) Complete disclosure of all debts and interest rates with documentation.
- (3) Sign a contract agreeing to the terms.
- (4) Must completely and utterly stop financially supporting the Other Child.
- First violation: Loan will have a 5% interest rate and interest will be immediately due.
- Second violation: Interest will increase to 10% and the interest will be immediately due.
- Third violation: The loan is in official default and all money must be returned immediately.
- (5) Every term except for #4 dealing with the Other Child is negotiable.
Bum’s Response?
You want me to sign a contract? You don’t trust me? You don’t trust me? I can’t just stop supporting the Other Child. It’s not that much anyway. If I don’t make the payments on the student loans then it will destroy the Other Child’s credit. He will declare bankruptcy…la..la..la…I am a single parent who can’t let a child fail…..la…la….la…it will destroy the Other Child’s future…la…la…la.
I respond.
What you thought you can just hit me up like a bank? There are strings attached to this money and that one string is that you must cut off the Other Child. The Other Child has absolutely no incentive to be on its own because you are always there to save it. Let the Other Child fail once in a while! As long as you’re there with financial help the Other Child will always rely on you and will always be a drain on your finances.
Bum is disappointed. I am disappointed. I return to DC.
4 responses to “Bum Asks for a $15k Loan” 
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It’s really hard teaching or awakening your parent(s) to what is going on if they don’t want to believe. Personally, when I’ve tried to make my mom see the true she never listens to me. My dad does though… sometimes…
I think your terms were good, perhaps your parent will chew on it a bit.
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Wow, $15,000? That’s a big loan! Is Bum unable to make the payments? Do you think the desperation to pay off the credit card debt might be motivation to stop paying Other Child any money? Erasing the debt might just provide Bum with more spending flow to give to Other Child…
I can see why you are in such a good financial situation; you put your foot down when your money came into play. Good for you!
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@MoneyReasons
I thought the terms were good too but Bum didn’t agree to it.@ThrifyBlog
Bum is only able to make minimum payments and not able to pay off the entire amount. I was hoping the depseration to pay off the credit card debt would mean the OC would get cut off but so far no. Bum is still helping the other child with some of the expenses.Well, as you will see from my post for today I withdrew the foot that I put down. I gave three reasons. Let me know what you think.
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Oh dear. Haven’t read the other post yet, but this is too too familiar. Reading on …
Don@Moneyreasons February 3rd, 2010 at 21:41