I am currently 27. At 22 I gave my sister 20k to buy her house. Essentially, all my savings. My parents also gave her all their savings. She thought she could flip the house a year later, the market turned. The house isn’t worth as much as it once was. She made terrible business decisions which led to my parents and I bailing her out for the last 5 years. She has no income now, my dad is retired and my mom makes 65k. They are no longer able to afford their bills. I pay their mortgage and my sisters mortgage which is about 7k per month. I only make 60k a year. I have been using my LOC to pay all these bills and I can’t do it anymore. We are living less than pay check to pay check. I am in 50k in debt on only one LOC. None of my credit cards have any balances. I also have never missed a payment. Current credit score is 840. I am dying of stress. I don’t know how much longer I can keep going like this. What would my next step be? Currently residing in Toronto.
I feel like I’m drowning in debt
byu/vicria inpersonalfinance
Posted by vicria
31 Comments
You shouldn’t let your sister’s bad financial decision drown your entire family.
Why are you paying for this house? Just let the house go.
Why are you paying your sisters mortgage? Is she unable to work? Stop doing that and put the money towards your debt until its gone.
Stop bailing her out. If she wants to drown let her, don’t let her drag everyone else down
Your sister needs to let go of the house and get a job. Why should you continue to pay for it if she’s not contributing?
Let’s stop paying family members mortgages. I promise that won’t bring you long term happiness.
Sounds like your sister should sell and get something very small ? And pay you both back ?
>I pay their mortgage and my sisters mortgage which is about 7k per month
Obviously you stop doing that. Your parents and your sister can sell their houses and move somewhere more affordable.
Stop paying for other people, problem solved. They’re adults, its time they grow up
Omg girl you need to stop supporting your sister at the very least!!! What the heck. Make her sell the house, even if it’s at a loss, get what you can for both you and your parents an she can move in with them
Please take care yourself before helping your family members. You are not in the position to be helping others. You barely make a living for yourself
You and your parents can’t afford to enable bad decisions and someone else’s upside down mortgage.
Sister needs a job. I’m in the US, not sure about Canada, but would a short sale be an option? Just let the bank sell it for what they can get without a foreclosure and then walk away from the payments. You’ll lose your money either way, but you can stop making payments.
Market has turned in Toronto?
What kind of crack house did your sister buy…
Is there a reason why you are addicted to having a good credit score?
If not, then just let the house go, sell it at a lost or let the bank take it.
Your sister needs to sell the house and pay u guys back.
If she can’t afford the house she’s in then she shouldn’t have bought it in the first place.
>my sisters mortgage which is about 7k per month. I only make 60k a year
7 * 12 is 72 thousand per year. You make 60. 60 -72 is -12. You’re losing 1k per month and from your post that is before you even begin to account for your living expenses.
Stop paying the debts of other people. Simple as that. I get you want to help your family, but you quite literally can’t. At this rate, the whole lot of you will end up bankrupt by the end of the year.
So you are 50k in debt and paying for other people’s stuff….maybe you should stop paying for anything non essential immediately, you all need to sell your houses and get back above water. Then you need to create a plan to save and you’ll be able to buy once again in the future. Your sister sounds like a mess with all due respect and your father needs to find an income stream to cover routine costs. Just because you reach a certain age doesn’t mean you get to retire unfortunately.
Stop paying other people’s mortgage! If they can’t afford them, they need to sell and downsize.
You cannot afford their mortgages. You just cannot. The money isn’t there. You have no money. You cannot pay 7k a month on other peoples mortgages because you make less than that. This is a ‘standing up for yourself’ problem, that led to a financial problem. But it’s not a financial problem originally. Ask yourself: what do you need to be able to tell them that this ends now and you need money coming back?
Why does your sister have no income? She needs to get a job and pay her own mortgage. Stop paying for her stuff immediately. Let her fail.
I understand it may be harder to do that to your parents, but they shouldn’t be helping sister out either. If parents cannot afford bills, Dad needs to go back to work so he can start helping with the mortgage, at least. Or they can sell their home and move to a smaller place.
You’re the youngest, you shouldn’t be paying for the oldest sisters dept. Why do you need to pay her mortgage hasn’t she got a job. I understand helping your parents 50% of their mortgage as your mum works, but not the full thing. You’re paying for bills when they’re not under your name. Maybe your sister just needs to move back home and let the government take away her home. But to be paying 2 mortgages each month is crazy unless you’re on a 6 figure salary this is not feasible.
Have you ever heard “Don’t throw good money after bad money”? Keep your good money and make it do good.
Your sister will survive a foreclosure just fine. Or she can rent out the house and move back in with your parents. Either way, do not use your “good money” for this.
Is this a joke??! Stop paying for anyone besides yourself! You aren’t rich and you can’t bank roll anyone. This is nuts. Giving your sister your 20K savings was nuts. Never should’ve happened.
Go watch Dave Ramsey lol
Maybe be an adult and learn how to say no.
Stop funding your sister. It is like treading water with a 10lb weight: At first it’s not bad but as time goes on, you get tired and eventually you will drown. You can either drop the weight or go down with it.
My advice is to stop helping your sister. Why prompts people to give their life savings towards another person for something that has no guarantee to work out? I wouldn’t give my sister or ANYBODY my life savings.
Sounds like she needs to move back home. Rent the house out and help your parents.
It’s going to be a tough conversation but you have to tell your sister and parents that you can’t afford to pay their mortgages. They need to figure it out in their own.
Some people don’t learn when you keep pampering them like paying for your sisters mortgage.
Once you stop she can learn from her mistakes and hopefully make better financial decisions in the future without expecting handouts from her sibling.
your sister needs to sell it and make everyone whole. also why are you responsible for her debt
Cut your losses and take a consumer proposal, or bankruptcy. You don’t have anything worth stressing this much over.
Why the hell are you paying for everyone else to keep moving forward in life? How lucky are they to have you as a footstool and a doormat and a money tree!!