Dear Dave,

Our daughter is 30, and she used to live a completely irresponsible lifestyle. This irresponsible behaviour extended into the way she handled her finances, too. While she was in college, she took on $20,000 in student loan debt against our advice.

About a year ago, she was in a bad car accident. She has recovered, but the experience really changed her.

Her outlook on life, her finances and spiritual matters, in particular, are so much more mature. We were thinking about paying off the remainder of her student loans, just as a way to help and celebrate her big turnaround. What do you think?

– Richard

Dear Richard,

Sometimes the best gift you can give a person is to let them wallow around for a while in the mess they made. Being forced to work your way out of bad decisions and irresponsible behaviour is a great remedy in lots of cases.

But in this situation, coupled with the fact that she’s now being more responsible with money, behaving like an adult and making better life choices, I’d want her to be as free as possible as she enters this new phase of her life.

So, if I were in your shoes, and I had the means to pay off her student loan debt without putting myself at risk financially, that’s exactly what I’d do.

Right now, I hope you two will take every opportunity you have to be a blessing to your daughter. She’s a lot like the Prodigal Son at this point.

She has experienced some bad things, come around in her thinking and she realises now what’s right and what really matters.

I hope both of you will give her the biggest hugs she has ever had, and tell her you love her and that you’re proud of her. Then, throw a big party and write a cheque to knock out the rest of that student loan debt!

— Dave

• Dave Ramsey is an eight-times national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions