Barefoot Investor Gives Advice to Fan Who Made Big Personal Loan, Great Mistake
The mover of the money said he doesn’t judge people who have bad debts, but he couldn’t get over reporting a huge mistake.
Money author Scott Pape, better known as Barefoot Investor, berated a fan who used his debt-free method only to write off everything by taking out $ 85,000 in personal loans and dipping into her great fund to help her boyfriend.
The woman named Linda bragged about going debt-free in 2019 at the age of 26 after reading her book, but she quickly moved on to this year and is drowning in a mountain of debt.
She explained that her boyfriend had had a few rough years after losing his job and having custody battles over her ex and that she wanted to support him.
“But now I’m desperate. I have nothing in my savings and I live from day to day. He is trying to get a loan to put the debt in his name, but his chances are not good as he has a bad credit rating and unexpected bills keep popping up, ”she wrote to the expert. financial.
“The bank says the loan will probably need to be secured. My friends gave me a hard time on this, but I just wanted to help my boyfriend like he would for me.
Mr Pape shared Linda’s plea for advice on how to get rid of debt from her name on her blog.
Although he said he wouldn’t “judge” her, he couldn’t help but criticize the woman for a big mistake.
“I’m really dirty that you took money from your super, Linda.” It was for your retirement, ”he said.
More than $ 37 billion has been sapped into retirement funds thanks to the early release of the federal government pension scheme during the pandemic, with 4.9 million Australians applying.
Industry Super Australia found that 725,000 people had effectively depleted their retirement accounts as a result of the program.
According to the McKell Institute, anyone who withdrew the maximum of $ 20,000 allowed under the early access program would have lost up to $ 3,644 in investment growth by May of this year.
Mr Pope told Linda that now that he had “gotten rid” of her superannuation problem, he would explain what to do about the debt she had incurred on behalf of her boyfriend. .
“If he has no assets, no income and a bad credit rating, he will have a hard time getting a loan,” he said.
“You can ask that his name be added to the loans, but you will still be jointly and severally liable: so if he doesn’t pay, they will still sue you. “
But he added that it was up to his boyfriend to step up and own the debt by doing whatever it takes to pay it off.
“Here’s the deal: it’s up to him to repay it. If he wants to prove his love and commitment to you, he will have two jobs (besides delivering pizza at night) to pay him, ”he said.
“I would sit him down and explain to him that you helped him out of love and because you knew he would do the same for you.” Well, now it’s time for him to prove it.