No. of Recommendations: 14
"Give a boy a fish and you feed him for a day; Teach him to fish and you feed him forever."

To your aphorism I rejoinder with one of my own: "You can lead a horse to water but you cannot make it drink."

I think it's admirable that you're taking all this time to educate and enrich your parents -- sort of a Fool evangelist -- but are they going to listen? Are they motivated? Overspending and not LBYM and all the other things that we've embraced need to be internalized in your parents otherwise all the work you've done will be for naught. Imagine, if you will, that the work that you are performing akin to pushing a rope. Ain't gonna happen. :)

Too, you've given a 10,000 foot view of the overall financial situation but you haven't gone into detail on the income and expense situation. With parents that >< close to retirement, I'd be darn leery about doing ANYTHING to upset the pension applecart, even a secured loan with the pension as collateral.

If you have spent a long time on the Fool you know about the snowball. How much of your parents' income is devoted to servicing that consumer debt? How much can they snowball? It takes a surprisingly short amount of time to knock it down if you can begin LBYMing and paying it off in an accelerated fashion.

B-mod is probably not going to happen if you simply throw a huge chunk of cash at the debt and cut out the credit facilities. (All I'll say is "Been there, done that.")

All you've done is relieve the major symptoms, but the "disease" can still be there. And if your parents are seeing fixed incomes on their horizon this can be a much more valuable lesson to learn right now, that to live on a fraction of what they take in. It will stand them in good stead and they'll have the satisfaction of knowing that they did it themselves rather than having it done for them.

Hope I didn't come across too critical. It's a great idea, but I would counsel you to focus your energies towards other ways of attacking that $40,000 nut. Leave their pensions be.
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.