<prompt> Human: Hi,I have a good friend who is in a terrible financial position and simply does not understand the state of his finances. I work closely with him on some business related projects and have full disclosure on his finances.He makes around 5,000.00 a month take home pay.Assets:Kia Optima 2013 26000.00 value has 27k milesChecking Account 1000.00Debt:Repod car loan he cosigned on a car that got repod and has an unpaid balance 11,000.00 11.9 APR7,000.00 Credit Card 19 APR28,000.00 Car Loan 5 APR11,000.00 Car Loan 5 APR his daughters carHe also says that a good friend loaned him 50,000.00 that he has to repay 500.00 a month on. he apparently helped this guy in a lifedeath situation and this guy got a court settlement that he loaned this money out ofOn top of debt repayments he pays 2k a month in rent, 600 in food, 250 Cell Phones, 100 TV, 70 Internet. Not sure on other things, but add car insurance, 1000 miles a month worth of fuel etc. He has stated to me multiple times that his money expenses are totalling around 6k a month at the very least. He has been draining his savings over the past 6 months since he took a hit to his income he is in sales.Today he called me telling me he is trading in his KIA to buy a 2010 Grand Cherokee SRT. His interest will go from 5 to 15 and a term will reset from 5 to 6 years. He is upside down 2000 on his trade and will need 11k to put down to get this 42k vehicle. Im not sure where this 11k is even coming from since he had trouble paying his rent the past couple months.When he told me this I drove to the dealership and tried to talk sense into him for an hour and left as he went into finance department. I fear that this could lead him into eventual bankruptcy as his debt overwhelms him and Im not sure how to convince him that he is crossing the event horizon.TLDR: Huge Debt at high interest, Super High Monthly Expenses, Wants to buy expensive car at rediculous interest rate when he has one that works fine.  <response>: Your friend has to want to change his reckless spending habits, and it doesnt sound like he wants to. Id make a promise to myself to not help him out ifwhen the train wrecks, tell him straight that hes being an idiot, and keep quiet about it after that. Theres only so much you can do. 