Dave Ramsey says: Mix your son's monetary gifts with a little financial oversight

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  • My2Cents Taylorsville, UT
    Dec. 27, 2012 8:03 a.m.

    If you area trying to pay off a debt through a collection agency then make sure they send you a payoff financial statement of full amount owed and do not send cash or money over the phone, this could be a hoax or scam. Don't even ask how they want to get paid after receiving statement, just send them or pay them in the most secure means for yourself and a middle man bank as proof of payment.

    Then there is a rule of law that you do not give money to family of friends to cover their debts. By law if you volunteer in a court of law you are paying a debt for family or friend you assume that debt and it becomes a permanent. If they always ask for money then its a guarantee that they will never be out of debt and become permanent non deductible dependents on your income. Best advice, tell them to tear up credit/debit cards.

    By not giving them money you preserve a family without conflict or regrets or servitude. Compassion is easy prey if you give in to it and as long as they know you are vulnerable.