Suze Orman opposes bailouts–but misses the addiction link
Oprah Magazine carries an excellent column by financial guru Suze Orman. It’s rare that I agree with financial advice offered by other experts, but Suze is an exception. While I have a tough time watching her on TV (she’s a bit animated for my tastes), her suggestions are generally sound.
Her column in the September issue of Oprah is no exception, except for what could be a fatal omission. The inquiry involves a daughter who racked up $10,000 in credit card debt, student loans for college courses that go unfinished and recently unemployed (“lost her job”), now behind on all her obligations. Here’s my comment:
Dear Editor,
Suze Orman is right-on in advising that the parents of the 18-year-old daughter who racked up $10,000 in credit card debt not bail her out. She suggests that they help her develop a game plan for dealing with the debt and show her how to reduce the debt faster, explaining it’s a good thing that she can learn from this lesson while still young. While excellent advice, this assumes that the girl can be reasoned with.
While many young people find themselves in debt, there are a couple of clues that suggest she is not just any young person: she may be an alcoholic one. She never finished college, she recently lost her job, and she is behind on all her credit obligations. This confluence of problems suggests the possibility of impaired judgment that may be rooted in alcohol or other drug addiction. If there is addiction, she will not be able to “learn” anything from this experience until she is clean and sober. We cannot approach any subject logically with a practicing addict.
The parents must first rule out substance addiction, which includes addiction to alcohol and pharmaceutical drugs. This requires that they speak with friends, prior employers and anyone else who might be in a position to describe drinking and/or using behaviors, as well as behavioral ones. Generally, if there is addiction, erratic behaviors will be found not just in her finances, but also in other areas of her life. If there is addiction, this must be treated before trying to teach, cajole or reason with her.