Today Cassie and David got their loan from the bank to pay off the exorbitant loan they got at the car dealer. They have every reason to be proud of moving forward in their life and doing all those things that are considered normal. Their traipse into the drug world and homelessness put them way behind their peers back in their very early adult life. And so they have come a long way. Working on their credit. They did get a loan on their own. It is a shame that there are companies out there that prey on those with less than stellar credit. And I understand those companies are taking a risk with people with poor credit.
Cassie had done the math and she would be paying for that mini-van twice in the six years of the loan. It is only a $10k mini-van. Since she has no real experience with credit and loans she did not understand. Twenty-three percent interest is not good in any way, shape or form. They had to use all of their savings to even get this loan. And they needed a vehicle. One that could haul their family of six. So they were kind of between a rock and hard place.
When I arrived to spend time there for the little woman's birthday we worked on remedying this situation. I could have just let it be and they could make all those payments which would help their credit for the next time they need a loan. But I couldn't unless they told me to. The best thing I could do for them, which allowed them to make the payments and build credit (as they should), was to offer to help them get a secured loan from their bank. And so we went and talked to their bank. And it was explained to us how this would work.
It takes time to put things in place. And so today they were able to actually obtain the loan and pay off the car loan. Their payment dropped by almost a third and the length of the loan was cut by a third. And when they are done they will only have paid about 1k in interest.
When Dave and I were young and starting out we received help. And it made a tremendous difference in how much breathing room we had to raise the family. I'm pretty sure the help was because of those kids. And the best way to help those kids is by helping the parents. And so I paid it forward thirty years later in helping the parents of my grandchildren. And really it doesn't cost me that much. But for them it is phenomenal and still allows them integrity and the satisfaction of doing it themselves. They make the payments.
Maybe now I should think about buying a house in Georgia. ;p