Dave Says: Mother Declared Bankruptcy and Back in Trouble Again

Dear Dave,

My mom filed Chapter 7 bankruptcy four or five years ago, and I thought that taught her a lesson. She’s on disability now and makes only about $600 a month. On top of all this, she’s piled up about $30,000 in credit card debt. Anytime she needs something and doesn’t have the money, she just pulls out her credit card. She’s even bought groceries and paid her electric bill this way. I don’t know what to do.

Barbara

Dear Barbara,

Well, she can’t file bankruptcy again because it’s still too close to the date of her first filing. It sounds to me like she’s going to have to face up to what she’s done and make some behavior changes. Personal finance isn’t rocket science – it’s about 80 percent behavior and 20 percent math. The kind of stuff she’s doing is not only addictive, it’s self-destructive. She’s trading a moment of pleasure for years of pain while that credit card bill grows into a monster. There are plenty of agencies out there that help disabled people find jobs, and help them remain active and productive in the workplace. It’s amazing what people with disabilities can do, but she’s going to have to find a way to get her income up and cut her outgoing money way down. That’s the cold, hard fact of this, Barbara, and it sounds like she’s going to need your help to make it happen.

Dave