Yesterday I posted I had bought my wife's Granddaughter a camper to live in. OK she is 27 , 3 year old son and has been living in bad apartments and couch surfing till she moved back in with her mom last summer. My wife's daughter has a bad habit of using title loan and payday advance loans when she is short or has an unexpected expense .In years past we have saved her car twice from repo. Well she past this on to Dee the granddaughter and got her to do a title loan for a property down payment. Ok what is done is done. I told Dee I would buy this camper IF she did 2 things when she got her income tax refund. Repay Me and go to the bank and refinance her title loan.
Ok her title loan was for 2500$ 2000 for the land and 500 for tires. Terms was 257$ for 24 months that's 6100$ for 2500$ I had a freaking heart attack that she did this. Ok as a single working mom her refund will be close to 4500 $. Dee said she was going to pay off the title loan and use the rest for the camper . Great plan but not the one I want her to do. She learned her money skills from her mom I have to break that and make her see a better way!
When her refund comes in she has agreed to deposit 2000 in Cds and take out a 2000 dollar loan to pay off her title loan. She will repay me for the camper and that will leave her 1200$ in savings for emergency's . The bank loan will cost her 172$ for 12 months giving her 85$ a month extra and 2000$ in the bank next year. When I showed her on paper what she would save every month and have next year she called her Mom over to show her. Her Mom said why do that you mite as well keep the title loan. Dee responded are you crazy? Her mom just didn't get it but Dee did.
I will never change her moms money habits every year she spends like a drunken sailor when her refund comes in. I think I have gotten through to Dee . Dee asked if I pay 172 a month for 4 year I could buy a 8000$ car for cash ? She is thinking in the right direction . No you borrow your own money and repay your self so in 8 years you would have the car and your 8000$ for 172$ a month. Her reply was WOW why don't they teach this in school . Good question.