Small business disaster!

Question: Theresa borrowed money from her family to start a small business. There has been some confusion and the debt has been passed on to other family members. They have paid everyone except her brother-in-law. They don't think they can pay it off without borrowing it. Dave attempts to dissect her "ludicrous" mess.

Dave Ramsey's advice: This is the most convoluted mess I've heard in a while. It's a disastrous mess. If you really owe him $28,000, and you can borrow it to pay him, I would. You'll have debt either way, but you at least have structure when you have a bank loan. Since this isn't in writing, the only way your brother knows how to collect on this debt is by a guilt trip.

It's good that you are honoring your word about this debt, but the problem is that you're not even convinced that it's even there. This family just decided what you were going to pay them. This is ludicrous! You need to sit down with him and your husband and determine if this is an accurate amount if you're about to get a loan over it. If it's accurate, then borrow from a bank and get this guy out of your life. And NEVER do business unless it's in writing again.

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