New Castle News

All About You ...

February 15, 2013

Dave Ramsey: Credit addiction must be dealt with

NEW CASTLE — Dear Dave: My mother-in-law has a serious credit card problem. She can’t afford stuff, but she shops anyway, acquires more and more credit and thinks she’ll pay for it all later somehow. Her husband has bailed her out a few times, but he’s unwilling to do it anymore. My wife and I, and her sister, want to address this issue, but where do we start? — Jonathan

Dear Jonathan: First of all, you need to stay out of the discussion. This is something for her daughters to handle, and her husband needs to be part of it, too. He’s closer to this and feels the effects more than anyone else in the family.

They need to sit down with her in a closed setting, where there are no interruptions, no television and no one else. Start with the fact that they love her and care about her deeply. This part is really important. But they also have to walk through what’s going on, and let her know they’re tired of watching her destroy herself and her marriage with this immature and irresponsible behavior.

Everyone involved should understand going in that they’re likely to receive a volatile, angry reaction from this lady. Sometimes people get ticked off when they hear the truth, especially when it’s connected to their own misbehavior. It may even be a good idea for your wife, her sister and your father-in-law to get some advice from a family counselor beforehand. What we’re really talking about here is an intervention.

If she were a drunk, you’d want to try and make her see how alcohol was hurting her and the relationships she has with her family. Basically, she has a credit card addiction, and it’s wreaking havoc on her marriage and their financial well-being. Show as much love and understanding as possible, but someone has to say something and draw a line in the sand. Otherwise, this behavior will eat everyone alive! — Dave

Dear Dave: I want to get out of my whole life policy. Should I formally close out the old policy, or just stop paying the premiums? — Anonymous

Dear Anonymous: Close out the old policy once you have a good, term life insurance policy in place. I recommend 15- to 20-year level term insurance equal to 10 to 12 times your annual income. For instance, if you make $40,000 a year, you should have $400,000 to $500,000 in coverage.

Term life insurance is much less expensive than whole life. Plus, did you know that you lose the part of your whole life policy known as the “savings plan” or “cash value” when you die? They only pay the face amount of the policy. So, close it out and stop pumping money into that thing!

But don’t leave yourself uninsured. Make sure you have the proper coverage in a term policy first. There is never a good time to save money inside a rip-off, whole life, cash value insurance plan. — Dave

(For more financial advice please visit daveramsey.com.)

 

1
Text Only | Photo Reprints
All About You ...
  • Ramsey.jpg Dave Says: Problems with no credit score?

    “Dave Says” is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey’s radio progam, “The Dave Ramsey Show.”
     

    April 18, 2014 1 Photo

  • Brothers.jpg Lori Brothers: Play with names — not with your food

    Do you remember being told, “don’t play with your food” when you were a child?  Or maybe you’ve said this to your own children or grandchildren. I’ve heard stories about kids slipping food under the table to the dog or stuffing Brussels sprouts into their pockets to get out of the pain of eating them.

    April 17, 2014 1 Photo

  • stright.jpg Sarah Stright-Hartley: A T-shirt dress can be a three for all

    I love finding pieces that can be worn for just about every portion of my life.  From daytime, to work, and then on a date with my husband, I like pieces that can go the distance.

    April 16, 2014 2 Photos

  • ivy_bday.jpg Kali Davies-Anderson: Happy birthday, Miss Ivy!

    This week I would like to take time out of my usual ramblings to wish my second born daughter, Ivy, a very, very happy first birthday!

    April 15, 2014 2 Photos

  • Olszak.jpg Heartbleed raises the stakes on Internet security

    My column last week dealt with Internet and related scams, along with steps people can take to protect themselves. Today’s column could be termed Part 2 of that topic, albeit from a different angle.

    April 14, 2014 1 Photo

  • Hudson.jpg Lugene Hudson: Celebrate Easter like Helen Martin

    What’s cookin? That’s one of our favorite questions at Culinary Conversation. We love when readers share some of their favorites. This week, Helen Martin of New Castle stepped up to the plate to answer that question regarding Easter dinners.

    April 12, 2014 1 Photo

  • Ramsey.jpg Dave Ramsey: You can’t borrow way out of debt

    “Dave Says” is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey’s radio progam, “The Dave Ramsey Show.”
     

    April 11, 2014 1 Photo

  • Brothers.jpg Lori Brothers: Wellness a growing trend among those over 50

    The power of choice that the explosion of Internet information has generated is moving us as a culture in a direction to examine who we are and what we really value.

    April 10, 2014 1 Photo

  • stright.jpg Sarah Stright-Hartley: Some perfect fits for heading back to work

    I'm heading back to work soon and I've really been thinking about my work wardrobe — especially because I'm hoping most of it still fits my post-baby body.

    April 9, 2014 2 Photos

  • Kali.jpg Kali Davies-Anderson: It’s one of those days — and sometimes that’s OK

    Today, I am distracted. I had a long weekend. I am kind of in a bad mood. My daughter is playing with a toy with multiple musical buttons and keeps interrupting the playing song to start it over again.

    April 8, 2014 1 Photo

House Ads
Poll

Are you concerned enough about the Heartbleed bug on the Internet to change all of your social media and website passwords?

Yes. It’s always a good idea to change passwords regularly anyway. I just have so many, I’m not sure where to start.
No. From what I’ve read, companies are still trying to figure out how to fix the flaw. The bad guys will just have access to my NEW passwords, too.
Not sure, but I blame Al Gore. He invented the Internet, right? How’s he going to get us out of this mess?
     View Results