Just when you think you have the established title of “Empty Nester”, here comes your daughter with her tail between her legs, and broke from running up tens of thousands of dollars of credit card debt, and she cannot even afford her apartment anymore. Credit restoration is not always easy when you are trying to help someone accomplish this goal, as they have to be on board and have a like mind to achieve the objective of restoring credit, and keeping it in a favorable light. Getting back to basics is the first step in paying of overpowering debt.
Sit down with your adult child and let them explain how they came to this point in their life, and reserve your own personal judgment as this will only create a negative situation that will only throw up an emotional wall preventing them from wanting to move forward. Explain to them that you are not there to tell them how to live, but facilitate the process of getting them out of debt. Unfortunately today’s young adults are taught a very young age that credit cards are just a part of life, and most people will be in debt their whole lives. Probably a little realistic education in what a normal and functional life is like living within one’s financial means.
In order to restore credit for your child, they will have to agree to a monthly financial plan that will keep them on a tight spending diet. Writing out the plan and having them read it over and sign it will help them realize the severity of what lavish spending has done to their lives. Helping them stay on target by having essentially an allowance from their paycheck they can spend on necessities only will drive home the reality of the situation, and cause them some discomfort when they cannot rush out and buy a latte, and a new blouse because they feel down.
