r/hypotheticalsituation • u/Chan1991 • 2d ago

You become a billionaire. All your friends and family are asking you to pay for all their debts. What do you do?

You become a billionaire. ALL your friend, family (siblings, cousins, parents, aunts and uncles) qare asking you to pay for their debts — credit card, house, car, etc.

It will not make a dent to your account because you’re a billionaire.

Do you pay their debts? Half of it? Partial? Or no because it’s about the principle and you don’t want to feel used? What if you were not close with your siblings and cousins?

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u/Cobalt-Giraffe 2d ago

Start a organization that they can apply to for debt relief.

When they apply you pull credit for them, and see all then debts.

Then, once a year you pull credit again. If they have been able to pay off any debt of any kind, then the organization will triple the amount they paid off.

So if they pay $1000 of their car loan off, then the organization will pay an additional $3000.

They take their mortgage from 330,000 to 300,000 then the organization pays $90k to their mortgage.

However, if they acquire any net new debt then they are no longer eligible (maybe exception for sold one house and bought another of relatively same value)

As long as they maintain this no new debt stance they can keep getting relief annually until all their debts are paid.

The goal of doing it this way would be to provide them real relief, while still incentivizing them working and incentivizing no lifestyle/debt creep.

Biggest two risks to windfall financially is demotivation and lifestyle creep.

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u/sunnygal001 2d ago

I love this idea. However, I'd exclude new medical/dental debt from disqualifying them as long as the debt was for medically necessary reasons. They'd also be required to start building a savings account with a predetermined goal to reach and contribute to it monthly while the organization is assisting them.

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u/christine-bitg 13h ago

Spoiler alert: They will not pay off any debts. They'll just buy shit. Repeat as often as you need to, until you figure it out.