My brother has about 5 loans that he paying back and he thinks that another 5000 loan will "solve his problem".
He has been this way since he was young, he's now in his 30's.
I'm trying to find a way to explain to him that debt upon debt isn't the solution and he is going to have to spend 5-10 years paying back all the loans and that each one locks him down more and more to a cycle of working to get by in the month.
My main question is: do you know of any slideshow or presentation or game that explains these things? Wordy answers are great for normal thinking people but I think I need more emotive means than just text or words (the internet is full of it). Even a video showing these things would be great.
Here are some facts on the loans (all maxed out already, in order of interest rate more or less):
- 65,000 car loan remaining
- 35,000 personal loan
- 7,800 clothing store account
- 35,000 overdraft,
- 8,000 loan from me
Try not to give the usual advice of paying the highest interest first, reducing interest rates where possible, should go on debt review, reducing unnecessary expenditure or that he isn't smart (clear) and has acted on impulse one too many times.
Note: Values are in ZAR not in USD, so the equivalent USD value (in living expense terms) would be (1/2) half of the numbers above. His income is 12,600 per month excl taxes.