#SingleMomFinancialHelp #DebtReliefOptions #SavingForTheFuture
Assessing the Situation
As a young adult with $20K in savings, facing the dilemma of whether to liquidate all your savings to help your single and disabled mom who is in financial distress can be overwhelming. It’s important to carefully evaluate the situation before making a decision.
Understanding Your Mom’s Financial Burden
Your mom’s situation is indeed challenging, with $2K in monthly expenses and a $14K debt looming over her head. While her freelance work has been slow and her chronic pain limits her ability to work, it’s crucial to consider all options to help her overcome this financial hurdle.
Weighing Your Options
Before deciding to liquidate all your savings, consider the following options:
– Explore debt relief programs or negotiation with creditors to reduce the debt burden
– Look into government assistance programs or local community resources for additional support
– Consider finding a part-time job or side hustle to supplement your mom’s income
– Seek financial advice from a reputable advisor or nonprofit organization specializing in debt management
Creating a Financial Plan
It’s essential to develop a comprehensive financial plan that addresses both short-term and long-term goals. Consider creating a budget, prioritizing necessary expenses, and finding ways to increase income or reduce expenses.
Supporting Your Mom
While it’s commendable that you want to help your mom, remember to also take care of yourself and plan for your own future. It’s essential to strike a balance between supporting your mom and securing your financial stability.
In conclusion, while liquidating your savings may provide temporary relief for your mom’s financial crisis, it’s important to explore alternative solutions and seek professional advice before making a decision. Remember that your well-being is just as important, and finding a sustainable solution that benefits both you and your mom should be the ultimate goal.
Everyone’s telling you not to use your savings. But at least pay a few months mortgage so you dont lose the house no? Then you can figure it out from there.
1. Escort or go with Mom to your nearest social security office and apply for SSDI and SNAP or cash assistance for her only. Follow the steps that the SSA office wants you to follow. No matter what. No matter the paperwork requirements. Tell Mom that you and her cannot get lazy or lose momentum in cooperating to work and get her SSDI. Get her Medicaid and cash assistance. You need to file for eligibility.
2. Put the house for sale as is. Do not hire an appraiser. Call the local or county housing authority and request an inspector to check the house and provide a status report.
3. Keep your savings. Do a garage sale. Sell old jewelry or clothes; anything to bring your mom income.
4. Start cleaning the house and do some improvements on your own. Paint the kitchen. Sanitize the bathroom. Do all that to prepare a showroom. Then advertise it for sale by owner.
Good luck 🍀👍
Why haven’t you helped your mom apply for disability?
I’m missing what is stopping you from working? You had a bad previous job experience?
You are 25, able-bodied, living with your mom and paying nothing?
I get the sentiment of not bailing your mom out at your own detriment, but if I am reading this correctly, this home is also where you live? In which case it may be worth catching the mortgage up and focusing your joint efforts on keeping a roof over your head while letting the rest of her bad debt go into default.
In my area, you couldn’t rent a one bedroom apartment for that mortgage payment, let alone two, and if the home forecloses you are going to be using a big chunk of your savings as a security deposit on your own apartment (if you can find anybody who will rent to you with no income, which will be a struggle in its self).
You may not be able to work enough to cover all the bills, but 20 hours a week to help slow the bleeding does make a difference. I would focus on keeping a roof over both of your heads, and that means using enough of your savings to catch up the mortgage and close any gap between what you can make working part time within your physical limitations.
Life gets significantly harder when you are homeless, and without jobs and income, your chances of getting an apartment if you lose this house are slim.
Hey, social worker here. Put your oxygen mask on first- do not lose your savings. Please go with her to the Social Security office if she is/becomes too disabled to work for permanent disability, get her on state Medicaid and food stamps. For now see if she is able to get temporary disability in your state (SDI here in California) or unemployment insurance benefits.
Is there a way she can rent a room or two in her home to others to help supplement the mortgage payment?
Should apply for SNAP as well and any other aid available
What happens when she needs the next $14K?
mom could do a chap 13 bk and keep her house
Should she be receiving
Social Security Disability Insurance (SSDI) or “Disability” provides monthly payments to people who have a disability that stops or limits their ability to work.
Do not pay your mom’s mortgage. If you want to help, buy her house from her and rent it back to her. That way, you will have something to show for your money.
explore bankruptcy, maybe she can sell you the house first.
Do not liquidate anything. Contact a bankruptcy attorney ASAP. That will be the best route for her. She will likely get to keep the house and one car. She will have to start over, but it is actually a good thing she will have bad credit for 7 years. It will keep her from getting into this mess again for a long while.
The best advise I could give is do not waste your savings to temporarily pay a mortgage you eventually won’t be able to afford. If you save the house you’re all in and better be able to continue payments until it’s paid off. Otherwise you wasted your money. Good luck.