- June 22, 2023
- Mark Elwes
Is it possible to be a support for parents who are in debt?
Table of Contents
Your parents are your biggest and unbiased support system. All their life, they made sure to provide you with the best of all, be it about education or luxury. At some point in time, they might also get stuck in a debt trap.
Ben is the only child of Mr. and Mrs. Karl. Due to job commitments, he has to stay far away from them. For this reason, they never told him about their debt.
During his visit to the home, on one fine day, he came across a mail that unveiled the scary pile of debts they were dealing with. Now, his responsibility is to relieve his parents from the financial pain. However, it does not mean he should get himself into financial trouble.
The best way to help them would be by providing money from his savings. He should refrain from borrowing cash at high rates to provide his parents with the required financial support. He should help them bring their expenses under control while he pays off the debts.
These two strategies are much effective in speedy debt management. Therefore, the crucial thing is that you should step in to assist financially when your parents are going through a tough time. Keep reading this blog to find out other ways you can do the needful to help your parents.
Different ways to be your parents support system
Your parents were there when you needed them the most, and they are still there to help you through thick and thin. Debts are tricky to manage, and since your parents are ageing, they will need your support to get out of it.
Different situations will need different courses of action. Indulge yourself in the discussion of various scenarios.
Tackle financial problems when you have a single parent
It has been a few years since your parents have parted ways. Now, one of them is going through a turbulent financial situation. After analysing everything, you have understood that the condition is not as bad as you thought.
However, additional financial help would be required. You can arrange some amount of money that can cover a portion of your parent’s debt. What should you do to cover the remaining portion?
Opting for single parents loans can be helpful in this situation. These loans will plug the funding gap, which can be a huge relief for your parent. Keep repayments on your hand to safeguard them from the debt trap further.
Guide them to manage bad credit and debt
It will not be surprising if your parents have low credit scores. Continuous non-payments and late payments can result in this type of situation only. They desperately need your help to deal with this dual problem.
The only ray of hope is that once debt starts decreasing, you can expect some improvement in credit stature. After tonnes of calculations, you have figured out that your financial aid cannot help them single-handedly.
This situation demands additional help. It is well and good if people from your extended family are ready to help by lending some money. What to do if you do not have to access such favours?
No need to worry, as borrowing is still possible for your parents despite poor scores. They need to apply for 12-month loans for bad credit. Are you wondering how getting these loans can help in managing debt?
The repayment term cannot be convenient like this. You will get a flexible duration to pay back in small amounts over months. Therefore, the financial burden would be comparatively less, and you can pay back quickly.
The outcome of on-time payments will soon start reflecting on your credit report. It is because your scores will show upward growth. Getting these loans can be a revolutionary decision in your parent’s situation.
Keep track of their finances to play an active role
None can guarantee lifetime immunity from debts. It does not matter if your parents are just out of a debt situation. A new scenario will not take much time to pop up.
Therefore, keeping track of their financial condition has become critical. Due to the age factor, they might be unable to monitor the bill payment deadline. They might even forget to assess if they have enough resources to cover the need.
Your intervention in your parent’s life at this stage is necessary. You can help them stay punctual in making bill payments. Besides, you can guide them on how to say ‘no’ to avoidable payouts.
You may have learnt all the nitty-gritty details about finances from them. It is time you must remind them of that. If needed, set a budget for them to keep income and expenses under control.
Add your email id to get every update about their bank statement. Cancel the service subscriptions that they might not be using anymore. Help them pay off outstanding for a fresh start.
With growing expenses, the income of your parents might not be adequate. You must send some money to help get through any financial crunch. You cannot do this if you do not keep track of your parent’s finances.
The bottom line
You will not feel good seeing your parents struggling financially. Do not be a silent watcher but be an active participator! Your help can do wonders in their financial life.
Empathising is vital when your parents are exposed to a debt situation. Stop yourself from reacting too much and venting anger instead of empathy. Look at what went wrong to drag them into this type of problem.
As their child, you must look closer to understand their financial situation first. You can help your parents in the best possible way if you take care of your finances responsibly.
Make sure you are financially stable before providing them with your support. Discuss with your spouse or siblings for a better analysis and solution to this current problem! Strategise and then get into the plan of action.
Mark Elwes is the Editor-in-Chief at Extramilefinance. He is a notable member of the content strategy team since his joining in 2017. Driven by his fondness for the finance industry, he has spent years gathering as much knowledge as possible about various financial products that include loans also. Previously, Mark worked as a senior journalist writer with experience in writing blogs and articles.