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.
I have never used a title loan company so I never knew just how bad they screw people. 200% interest! There should be a law against that..Thanks you worthless politicians for looking out for We The People!
ReplyDeleteTo much money is made this way and to many campaign contributions made by the industry. It penalizes desperate people. In Alabama I think its caped at 10% A MONTH.
Deleteexcellent question!
ReplyDeletehow to reconcile a checkbook and those things you are now teaching the granddaughter should be required, instead of getting knotted knickers over the shape of pop tarts or star wars t-shirts!
Deb school teaches no real life skills. I asked a teacher I knew why don't kids learn to read a tape measure or calipers and micrometer, work a cash register a point of sale system. No teachers could do any of that.
Deletei remember in my home state around 1970, the teachers started to be paid every month instead of for 9 months. seems they got into $$$ trouble because the younger generation of 'teachers' had no idea how to budget for over the summer months.
Deletemaybe they didn't have the sense to get or make a summer job.
Budgeting and money management are lost skills.
DeleteI'm allergic to money. I have to get rid of it as fast as I get it to avoid that burning sensation I get in my front pocket area.
ReplyDeleteThank God the wifely unit knows how to make Copper wire from pennies and takes care of all that shit or we would be broker than shit all the time.
It is amazing how many couples are opposites in spending. I save but when I buy it is a large purchase . She piddles her money away.
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