My Mother-in-Law is a Sponge

Scott,

My soon-to-be mother-in-law is bad with money. She has over $100,000 in credit card debt, as well as a couple of 60-month interest-free loans that were never paid and are now charging 29.99% interest. My fiancé (we are both 25) is considering getting a loan in his name to ‘help’ her, but I believe she will just go back to her old ways. I worry about this debt when it comes to us buying our first home or if she does not pay for the loan. Over the past two months we have already paid $5,000 for her bills. Help me!

Gillian

Hi Gillian,

There’s no such thing as one Smartie.

That’s the lesson I’ve learned from my two-year-old: I give him a Smartie, knowing full well that it sets me up for a full-blown tanty if I won’t give him a second one.

After paying $5,000 of his mum’s bills, that’s the situation your fiancé is facing (and it sounds like your mother-in-law is behaving like a toddler -- not so smartie).

Bottom line?

Your mother-in-law is financially crazy. And you’re absolutely within your rights not to invite crazy into your life -- and you sure as hell don’t need to be guilted into funding her stupidity.

However, that’s a harsh message to deliver to your fiancé.So here’s what I’d do instead:

Explain to your fiancé that your mother-in-law needs love, kindness and understanding. She needs expert guidance. She needs a financial hero who can help her … in fact, she needs James Bond! Or, more accurately, she needs to call the not-for-profit Financial Counselling Australia hotline on 1800 007 007.

However, if she’s stamping her foot, quivering her lip and demanding another Smartie, you may need to book an appointment on her behalf. You should even offer to go with her -- that’s what a loving daughter-in-law would do. The financial counsellors are the best people to help her face up to the reality of the decisions she’s made, and provide solutions for her path forward.

Now repeat after me: no more Smarties!

Scott