Payday loan lenders see more elderly seeking out loans as debt continues to grow with all age groups. It is difficult living with growing costs when an elder is on a fixed income which doesn’t change. How do you help your parents handle their finances without going broke yourself? How can we solve their money problems to keep them from reaching out to the cash advance lenders for fast money needs? Whether it be from medical costs to grocery costs, keeping them in their home or finding a more economical place to reside, helping your parents solve their financial woes will not only help their current financial status, but will help to dissolve future insolvency.
Fixed incomes for the elderly may not support the option for a payday loan lender.
Before you dig into your own income to help support your parent’s finances, you will want to scrutinize their financial portfolio.
- Sit down with your parents and find out what are their assets, income, pensions, investments, Social Security, or home equity.
- Know how to access all of their money possibilities.
- Find out what or if there are any penalties for any of them.
- Are their living arrangements beyond their income capability? What are the relocation opportunities?
- Prioritize fixed costs. Look for assistance plans to help with costs.
- Try not to supplement their costs with you income. If you have extra, it should be going into your retirement plans to keep yourself from the dame situation.
- Refrain from co-signing. You will be left responsible for the debt if it is not paid off before they pass or some other unforeseeable event occurs.
- If your parents do not agree with changing lifestyle in order to make ends meet, you should not feel responsible for supplementing the cost.
- If you do decide to help financially, be clear about expectations which come along with your money. Use a financial consultant to help if you have trouble talking openly with your parents.
- Setting up a trust for your parents may be the more beneficial way to help out your parents. Even if you are financially well off, it will be easier for a trustee to supervise the use of the money.
- Look into long-term care insurance. We always hope that this assistance is not needed, but elderly with health issues can have expensive long-term consequences.
Approach the subject sensibly and sensitively. Financial planning for the remaining years is a difficult topic as well as giving up financial control. It is a tough subject and you as children may not want to approach it with your parents. There are professional financial advisers who are trained in such matters and a third party may take some of the sensitivity out of the conversation.
The last thing you want to have happen is have your parents lose their home which they worked so hard for. You will also not want them living off of credit cards or sinking further into debt with direct cash advance lenders when their retirement income cannot support the payoff. Find alternative ways for them to have the money available for medical costs or other unexpected costs.
