Getting out of debt is one of the big dreams of many people. They want to become financially free. They want to have a lot of money. But, most people don’t even know the cause of getting more debt. And that is, using credit card unwisely, borrowing money or getting loans just to buy the latest gadgets.
How to help someone in debt is very important question to answer today. While I am thinking what to post in InvestmentTotal.com, I opened my email and someone ask this question.
A reader asked a question, how to help someone in debt? I want to help my brother who has huge debt, some are in credit cards and other are from financial institutions like lending company. Elizabeth H, 32 from San Diego, California, USA, is a loyal reader of InvestmentTotal.com, she wants to help her brother to get out of debt.
- Give him an opportunity to earn more money like extra work or business opportunity.
- Teach him how to manage his debt by paying first the debt that earns interest. (example of these are credit cards, loans from financial institutions, etc).
- Teach him money management.
- Tell him the effects of impulse buying. Buy the needs not wants.
- If after all he is still in huge debt, help him pay for his debt.
Do you think the advice given in number 5 is advisable? What can you say? Will you lend money to your brother just to pay his debt or let him alone find the solutions. In personal finance, it is not a good idea to help lend money to other people just to pay his debt. But since she is your brother, it is your choice to pay his debt or not.
What can you say about this guide? Did this helped you? What about you? If you’re Elizabeth, how would you help someone in debt? Please leave a comment below! Thank you!
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