When someone you love is struggling with debt your first instinct may be to step in and take care of things, however this may not be the best reaction for elderly parents dealing with debt. For many years your parents have taken care of the family and they (as well as their pride) may not appreciate you riding into the fray to rescue them. That being said there are things that you can and should consider doing to help alleviate their struggle.

Leading causes of debt for elderly.

Senior citizens age 65 and older make up a fast growing group for credit card debt with many retirees seeing their current debt levels causing problems.

• The way of life- some seniors experience credit card debt in their golden years as simply an extension of poor money management throughout their lives. For many the cycle of debt has been a problem they have been dealing with their entire adulthood.

• Unable to make ends meet- If retirees lack substantial retirement funds they may be forced to live off of Social Security benefits or a pension that doesn’t cover the cost of living.

• Medical expenses- As our parents age and face increasing health issues they may turn toward credit cards to cover expenses otherwise not covered by Medicare or private insurance.

• Death of a spouse- Lack of knowledge, experience or benefits may lead widows and widowers to be at a loss when a spouse passes away. Handling family finances may be too much to handle in addition to their emotional loss.

What can you do?

The following tips can guide you in how to best offer help to an elderly parent dealing with debt.

• Look into outside resources- Unfortunately this problem is far too common therefore there are many programs designed to assist the elderly experiencing financial difficulty. You may find relief through your local government, senior centers, churches and other groups. Some of the assistance provided includes subsidized bills, prescription drug assistance and even hot meals. Your parents will most benefit by you helping them understand the system, complete paperwork and get over the embarrassment of accepting help.

• Enlist the help of other family members- By creating a financial “tag team” you can assign different family members specific responsibilities to help your parents through this difficult time. One member may contribute cash to pay bills, another might help around the house to avoid hiring outside services; the key is to spread the responsibilities so that not one person is doing everything which can quickly become overwhelming.

• Hire a bookkeeper- If feasible consider hiring an outside party to help your parents handle their personal finances. Dealing with elderly parents and finances can put a strain on the parent/child relationship; by hiring an third party assistant you remove the emotional attachment allowing you to remain steadfast in the role you play best as their son or daughter.

• Don’t take over their debt- If you take on your parents debt you will have less money to invest in your own future. This may at first seem selfish or uncaring but the fact remains if you do not properly handle your finances you are simply setting your children up to deal with the same thing as you age -keeping the cycle of debt continuing for another generation. By all means do whatever you can to help your parents as they have helped you throughout life, but do so in a way that will safeguard your own financial future.