Brother-In-Law Is $200K In Debt With A 'Sketchy' Loan – Suze Orman Says The Money Isn't The Problem, Behavior Is

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Dealing with a family member's financial trouble can be stressful — especially when the debt is substantial. On a recent episode of her "Women & Money" podcast, Suze Orman addressed a listener question about a brother-in-law who owes $200,000 on a high-interest, unconventional loan. Orman's take: the real issue isn't just the debt — it's the behavior behind it.

The Debt in Question

The listener, Leslie, described her brother-in-law's situation: he owes $200,000 at 12% interest on a loan that can be paid off as quickly or slowly as he chooses. Leslie called it "sketchy" and worried that he could continue to spiral financially.

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She wrote that she initially thought a home equity line of credit could help, but said that rates for him would be around 18%. She wondered if selling his house — valued at $500,000–$600,000 — might help his family reset their finances.

Why the Money Isn't the Core Problem

Orman said that simply throwing money at the debt won't solve the underlying issue. "The goal is not just to get out of this debt," she responded. "Because if we can't figure out why you got into this debt to begin with, you're just going to get into it all over again."

She highlighted the need to examine the reasons behind the debt. Was it due to overspending, gambling, or other financial habits? The high interest rate, she said, reflects the risk lenders perceive in someone who struggles with responsible repayment.

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Why HELOCs and Selling the Home Aren't the Answer

Contrary to what Leslie suggested, Orman advised against taking out a HELOC. She said the high 18% rate is a red flag and selling the house to pay off the debt could be equally problematic. While it might provide short-term relief, the underlying spending habits could quickly deplete any equity gained, leaving the family without a home and potentially deeper in financial trouble.

Start With the Behavior

Orman's key advice? Focus on the behavior, not just the money. She told Leslie and others in similar situations to have open, honest conversations with family members about why they accumulated the debt and what patterns contributed to it.

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"Rather than giving him financial advice, you need to start talking with him in terms of personal advice as to what the hell is going on and why?" Orman said. "‘Cause until you figure that out, you cannot solve this."

The Takeaway

For families facing debt challenges, Orman's guidance is clear: don't just chase numbers. Understand the habits, motivations, and decisions that led to financial trouble. Only by addressing the root cause can long-term stability be achieved — and potentially prevent a repeat scenario in the future.

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This article Brother-In-Law Is $200K In Debt With A 'Sketchy' Loan – Suze Orman Says The Money Isn't The Problem, Behavior Is originally appeared on Benzinga.com

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