On the Suze Orman Show on Saturday night there was a 28 year old with $210,000 in credit card debt. He has also filed bankruptcy twice before. When asked he thought he had $100,000 of debt. Suze said when they added it up, it was $210,000. His parents have bailed him out twice before and 90% of the current debt is in their names.
Between his 2 previous bankruptcies and the current debt, the total amount is almost a million dollars.
He has 65 credit cards, which half have balances. Half of the credit cards are in his parents names.
His parents are both 63 years old and retired, so it is getting difficult for them to continue bailing him out. When he runs up the credit cards, his parents take an advance on another credit card in their names to pay off his debt.
He is still spending almost $1,000 a month on eating out, coffee, going out, etc.
This is another example of why I feel is it very important to teach children about financial matters and consequences of getting into trouble with debt.