Let’s talk about a topic that many of us may struggle with- handling our parents’ debt. It can feel overwhelming and stressful, but it’s important to find ways to navigate the situation. Whether it’s creating a budget, having an open and honest conversation with your parents, or seeking financial advice, remember that you are not alone.
Creating a budget can help monetize and allocate funds to pay off their debt, while also setting aside money for your own financial goals. Talking to a financial planner or a close friend or family member who has access to budgeting knowledge would be the first step in developing a plan. For example, if you were to put $100,000 of your parents’ money into an investment returning 4%, there total after 5 years would be $127,298.27. See this calculator from AARP to crunch some numbers https://www.aarp.org/money/investing/investment_return_calculator/?cmp=KNC-DSO-COR-Core-Money NonBrand-Phrase-30902-Bing-MONY-InvestmentReturnsCalculator-Phrase NonBrand&&msclkid=623deaeb71081c9afd5d8ce759cdb235&utm_source=bing&utm_medium=cpc&utm_campaign=Core-Money-NonBrand Phrase&utm_term=finance%20calculator%20investment&utm_content=Investment%20Returns%20Calculator&gclid=623deaeb71081c9afd5d8ce759cdb235&gclsrc=3p.ds.
If your parents have stayed in the hospital, there is usually a financial advisor who can help with monthly payment plans or helpful information. Once, I had to get a procedure done. The surgical office said, “five hundred dollars will be due on the date of the procedure." It was made to sound mandatory. I happened to call the financial officer at the hospital. I was told that I have a right to ask them to push it through to insurance first. I ended up paying nothing. Take control of your finances and give your parents the support they need.
As we navigate through life, it’s important to remember to have open and honest conversations with our elderly parents. Take time to truly listen and understand their needs, fears, and wishes. These conversations can bring us closer, strengthen our relationship, and ensure that their voices are heard. Including them in the plan process can help bring them on board with any plans that you come up with together. Developing your own plans may not be in line with their needs and fears, creating some resistance. To find the best solution for debt reduction, visit libraries and senior centers for resources. Many references can be found on the internet as well. Read information together for a cohesive, smooth conversation. This can produce results with more practicality and fewer struggles.