My Parents are in Debt How Can I Help Them?
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
If your parents are in debt and you’re worried about what to do, you’re not alone. Many people face this issue and are searching for a way to help.
Each month, more than 170,000 people visit our website for advice on debt solutions. We have a team of experts who understand your worries and are here to provide guidance.
In this article, we’ll explain:
- How to tell if your parents are in debt.
- How to talk to your parents about their debts.
- If you might be responsible for your parents’ debt.
- Ways to support a family member who is in debt.
- How to connect your parents with free debt advice services.
We understand that this is a tough situation. Here at MoneyNerd, we’ve dealt with similar issues, so we know how you feel. We’re here to offer advice and help you find the best way to support your parents during this difficult time.
Read on to learn more about how you can help your parents tackle their debt problems.
How to spot your parents are in debt
It can be difficult to know when your parents are in debt, especially if you no longer live with them. However, there may be some things and behaviours that suggest they could have money worries. If you see more than one of the below, it may be a sign that your parents are having money problems due to debts:
- Lots of unopened letters around their home
- Recently selling assets with no logical reason, such as selling their car
- Being distant and withdrawn from you
- Your parents are arguing more than usual
- They receive lots of texts or calls that change their mood
But to know for sure, you will need to encourage your parents to tell you about their debts.
How to ask parents if they have debts
A parent may be unwilling to disclose their debts to their son or daughter out of embarrassment or even fear you will be angry at them, especially if your inheritance is at risk You can try to get your parents to tell you about their money problems by sitting them down and calmly asking if anything is wrong, citing the reasons you think there may be a problem.
If they are reluctant to volunteer information about a debt, you could try asking them if they are having money problems in a supportive manner. Avoid trying to find out if they have debts by going through their mail or looking through their phone.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
Can I be held responsible for my parent’s debt?
You are never legally responsible to pay the debts of someone else, including your parents. Even if your parents pass away with outstanding debts, the debt will not be passed on to you. In this situation, it might need to be repaid from your parent’s estate, which would mean the value of your inheritance will decrease.
» TAKE ACTION NOW: Fill out the short debt form
#2: Help make a monthly budget
One of the first things you can do together is make a monthly budget to work out how much disposable income your parents have each month and where more savings can be made. This can be used to work out which debt solution is suitable for them, and to negotiate smaller repayments with their creditor(s).
Some parents may not have the computer skills to make a monthly budget quickly, but you probably do have these computer skills. Or you can make one on pen and paper if you prefer.
You’ll need this budget for the next step.
#3: Put them in touch with FREE debt advice services
The next step is to get your parents to speak with a debt charity that offers free debt advice, such as StepChange. They assess each person individually based on their circumstances to recommend (and even set up) debt solutions that will make repayments more affordable and could even write off some of their debt.
You will need to have your monthly budget to hand when you call.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
Natasha
I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.
Reviews shown are for The Debt Advice Service.
How do you help a parent who is struggling financially?
You can help a parent who has financial problems by giving them money. There are other options if this is not possible or you do not want to just give them money. You could help them compare energy providers to find cheaper deals. The UK Government runs a comparison website (Uswitch) that allows homeowners to compare deals and save money easily.
Learn more about the debt solutions for your parents
You can find lots of information and examples of the most common debt solutions that your parents could use on MoneyNerd. We discuss options like a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA) and Trust Deeds for people in Scotland.
