Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Mom has no assets

Joe's mom is a stroke victim. She's also 81, and she has no assets, but she has $15,000 in old debt. Joe asks Dave how to deal with the situation, and Dave offers advice on handling the debt and the collectors.

QUESTION: Joe calls in from Phoenix, AZ, trying to help his mom. She’s 81, is a stroke victim, and has about $15,000 in old debt. She also has no assets and receives only a small pension and Social Security payments. Joe and his wife don’t have the ability to help with the debt immediately, but he thinks that he and his siblings could pull together to settle the debt.

ANSWER: You could probably settle this at 25 cents on the dollar, give or take, if you guys want to scratch up that kind of money. You can work it through. If you keep beating on it, you can probably settle for a quarter on the dollar if you want to do it that way.

Just explain to them that she’s 81, she’s got no assets, and they’re going to get nothing if they don’t take your offer. Just explain it over and over and over again if you have to, because the people you’re going to be talking to aren’t necessarily bright.