10 Tips to Help Seniors Deal with Debt

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Tips for Children of Seniors:

7. Investigate Your Parents Financial Situation

If you’re the child of a senior with some possible financial problems, you probably want to help your parents in any way possible. So, be ready to step in and investigate their finances, particularly if they are elderly. While it might be too early to get Power of Attorney, it can help to know your way around their finances for later in life, when this task will fall to you.

However, know that admitting to financial mistakes or debt is often a difficult and embarrassing thing to do. Your parents might be getting a little stubborn in their old age, and they might try to hide their debt from you. So, a little persistence on your part can help. By holding monthly or quarterly meetings to go over their finances and expenses, you’ll get a better scope of the situation.

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8. Don’t Co-Sign on Their Credit Cards

Never co-sign on any type of loan or credit card that your parent(s) might want to acquire. The reason that they need a co-signer in the first place is that they are not a good credit risk, or they have too much debt already. It’s unnecessary to put yourself in this position because if they die or default you will become the sole party that is responsible for repayments, any late-fees or collection charges that they have incurred.

If they already have existing cards or loans taken out in their own name, these debts won’t transfer to you when they die so don’t make future problems for yourself. Especially if you’ve already got some debts of your own. So, don’t risk your own credit-rating, no matter how much you’d like to help out your parents.