Mother in credit card debt, options?

Debt

I've read through several searches regarding credit card debt, and most of the people that have posted have worse situations. But, I didn't see anyone with the same problem, so I thought I'd ask.

I'll put it in bullets:

  • My mother is over 65, and receives about $1,250 a month in social security.
  • I own the house she lives in, I bought her car, I pay her insurance and property taxes, and I give her $150 a month. Her bills shouldn't exceed $600-$800 a month, and she's taking in $1,400.
  • She asked me for under $2,000 a few months ago, which I gave her, as I knew she had a friend visiting and didn't care too much if she used a portion of it for entertainment.
  • I have good reason to believe my mother plays the slots at the local casino, and plays them more than she admits she does.
  • She asked for that same amount this time, telling me that she has a negative balance in the bank and she needs it to get everything in order and she had credit card bills run away from her. At this point, I remembered a couple of comments my uncle (her brother) made, and also remembered that she had a fairly significant windfall disappear.
  • I asked her what she meant by 'credit cards,' as in plural. She hesitated and then I said that I cannot help her unless I know the scope of the problem. She asked again for the money and I told her simply that I wasn't asking, it was a condition of her receiving money.
  • She told me she has ten credit cards (yes, my jaw dropped) with variable balances varying from $500 to over $2,000.

At this point I told her that I loved her, and I need to understand the complete scope of this problem because it is our problem and I can't help solve it without knowing what it is. I told her I would transfer enough to get out of the negative balance, but I need to see a current copy of every single credit card statement before I will help anymore.

I'm lucky enough to have the resources to cover this, but I don't think it would be wise to do that. My current thinking is to get all the statements and figure out total balances, interest rates, etc. and understand all of the debt. This part is easy (I hope).

After that, then what? Do I

  • Co-sign a low-interest loan so she can pay all of the cards off, close the cards, and leave her one for emergencies? What I don't like about this is that she may get more cards, and I don't know how to stop that.
  • Have her file Chapter 7? This should prevent her from getting more cards.
  • Any other options I'm not considering?

I realize I've answered half of my questions, but there are a lot of smart people on this sub and I'm open to alternatives.

Posted Jun 26, 2017, 8:10 PM UTC

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