Need help with gambling problem

Need help with gambling problem (not mine directly thank god)...


The details (as I know it, Im sure there is information we are not being told):

My wife just got off the phone with her mom. It seems she (her mom), has been "gambling" in the stock market for the last few years. See has now maxed out 3 credit cards: $40,000, $30,000 and $30,000. So she has at least $100,000 of debt, with who knows how much stock that has lost probably 80% of its value. The credit card loans were teaser rates (0%) and are now I guess set to go to >20%.

Her house is worth about $80-100k, the bank is coming over to asses it next week. She's 62, widowed, "retired" and gets about $1500/month SS and pension.

My wife understandably is really upset, but strong and not about to run to the bank to bail her out even if we could.

I'm taking a risk throwing this out on a public forum, but we're at a loss as to what we can do or even *should* do to help from a debt management perspective (lawyer?, debt consolidation?, ??? ). AND what to do about what I consider a gambling problem - even though it's "stocks" I don't see much difference. She is the type always talking about the market, beating it, knowing how it works, obsessing with it etc.

Any recommendations or experiences would be appreciated!

I'm afraid your m-i-l is screwed.
She's been buying stocks with a credit card?
How does THAT work?

I've been an investor for 40+ years and I never heard of using credit cards to buy/trade stocks.

jeez
;-(

And we're likely not being told the whole story... *somehow** she's in hock 100k. And her house is the only asset she has...

She has a problem. She *thinks* she has hit bottom but she hasn't seen nothing....

It's not like she told anyone she was taking $10k, here, $10k there.... this has been going on for years (we now find out). Always thinking she could time the market etc. I suspect it is only an issue because the house of cards of credit is drying up.

Holy crap, that's a tough situation to be in. If they're looking to levy against the house, she may want to consider bankruptcy.

I agree - how does it work? Lawyer up?

I believe she still thinks SHE can get a consolidation debt loan on the house and pay off the cards. But shes STILL F**ked. $1500/mo cant cover that kind of loan and be enough to live on...

Go to the yellow pages or contact your local or state bar association for a referral. Find a bankruptcy attorney who will give you a free consultation. Talk to more than one attorney.

She's facing some serious trouble very soon. She needs advice ASAP.

I wasnt clear - she's having a bank come out to asses for a loan SHE is trying to get to cover the CC loans. Not for repo (at least that is what she says)

only IF, she then destroys those credit cards. If she bails herself out, she won't get a second shot.

In that case, before she takes out a mortgage on the house, a non-profit credit counseling service may be a better bet than running to bankruptcy court.

It's almost impossible to give good advice in a forum like this, so take everything anyone says (especially me) with a huge grain of salt. The first step is for someone other than her to get a comprehensive picture as to what's been going on. Look into all the available options (a non-profit credit counselling service; bankruptcy; debt management) and see what the best choice is.

Best of luck, that's got to be a hard situtation to be in.

I fully realize the pitfalls - but appreciate all the help and concern.

Then deal with the "market obsession."

Bake

There are all kinds of free services provided by non-profit organizations and state agencies. The "GET OUT OF DEBT NOW" companies and lawyers that advertise the same are all shams. They'll scam you. Go with something safe. She has options.

Thanks - I'll start googling. It's in Indiana.... I looked a little but it's still tricky to sort out the scammers trying to sell you a loan.

I bet her broker is a real sweet guy. Probably uses that commission money to buy puppies to eat. I agree that a lawyer is your best bet on the financial side.

I got a nice private message - thanks.

I think the big issue is that this is a gambling issue. I'll check out http://www.gam-anon.org (thanks SG). But anyone else have experience in this? How do you help the person admit the problem?

Well, tomorrow is ok. I've been through bankruptcy (not for those reasons), and there may be ways to save the house and discharge the unsecured debt.

DO IT!! Get professional advice immediately.