How To Help Your Parents Get Out Of Debt

It is no big surprise that the economy isn’t in the best shape right now. This can be extremely difficult for many families. This is especially true if you are retired and living on a budget. Once retired you really don’t have any way to supplement your income and can only spend a certain amount of money each week or month. If this is the situation that your parents or grandparents are currently in, it can be heartbreaking to watch them make bad financial decisions that just put them in debt. Do you wish that there was something that you do could to help them get out of this debt or open their eyes that what they are doing?

Lead By Example

What good is it going to do to tell someone to get their finances in check if you don’t have your own finances in check? If your parents can’t keep track of their spending habits and money it is going to be up to you to support them and how are you going to do that if you can’t support your own family? Ideally, you will want to sit down and talk to your parent about their finances, but this really isn’t as easy as it sounds. However, if you lead by example and show your parents how you are currently managing your finances it might make the situation more tolerable. Most people are willing to discuss a certain topic when you are willing to open up about your own struggles.

Know Where The Debt Is Coming From

Your parents might be reaching the ages where they could pass away suddenly. And, this is going to leave you with the burden of their debts. The probate process certainly isn’t easy on anyone and it just makes life more stressful, but how are you going to help your parents if you don’t know where their debt is coming from. Do they have five or six creditors that they currently owe? Or, are they overspending on uselessjunk each month? Whatever the situation is, you need to sit down, gather their financial statements, and figure out where the debt is accumulating.

Develop A Plan To Get Back On Track

Once you know where the debt is coming from or the problems that are causing the debt to accumulate, you can develop a plan to help your parents get back on track. Layout strategies and plans as to how much your parents need to pay each month on their bills. Track how much they are going to have leftover to spend on the necessities. Discover if they are going to have anything to throw into savings. Encouraging them and providing them with financial support whenever possible will go an extremely long way to making them feel better about the financial changes that they are making.

Never Be Afraid To Turn To An Expert

 

Sometimes it can be truly hard to help someone get out of debt. This is especially true if they are way in over their heads. In these situations it might be best to turn to a financial advisor. Not only can these professionals help your parents get out of debt, but they can come up with strategies and plan that will help them stay out of debt in the future.

 

Disclaimer: This content does not necessarily represent the views of IWB.

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