Debt Management with Aging Parents

Adults with aging parents tend to focus on the emotional and logistical aspects of caring for them. But, in addition to these concerns, they must also address financial issues. Credit counselors say that putting debt management worries behind you is critical to relieving stress, so you can put your energy into the critical needs faced by you and your parents.

Families with existing debt management issues can find it overwhelming to take on these additional financial burdens. When planning for parental care, consider these issues raised by the credit counseling professionals at Consumer Credit Counseling Services (CCCS) agencies like ours:

• Will you pay for all household expenses, or will your parents contribute? An important topic that requires immediate discussion, assuming you accept responsibility for all expenses can radically change your finances. It is easy for debt to become unmanageable. As you are planning, consider consulting with a professional credit counselor to create an updated budget.
• What are the parental medical coverage options? Medicare covers most adults older than 65, but there are restrictions.
• Can you avoid probate by creating a parental trust fund? Explore this legal option with an attorney.
• What legal matters may need to be addressed? Find out about requirements for wills, living wills and powers of attorney.
• What about joint bank accounts or property titles? These can streamline managing an elderly parent's affairs, but watch out for tax and other financial consequences. For example, Medicaid looks at the assets of both owners to determine eligibility.
• Can you make time for yourself? For parents needing constant care, budget for professional or family assistance so that you can take some outings alone.
• How will your work time be affected? You may have to drive parents to appointments or care for them at home. If necessary, adjust your budget to reflect any expected income loss.

Saving Money on Support

There are low-cost adult-care options, but it can take time researching them. Social agencies change and grow, so expect delays in making phone calls and being referred to new agencies. Try the Red Cross, Department of Health and Council on Aging. Check the internet for more resources, and ask each agency for referrals to others.

Don't forget how important it is to maintain your own well-being. As a caregiver, you must know and respect your limits to lower your risk of becoming depressed, sick or burned out.

Getting Financial Guidance

Before making any moves, talk with your parents about their expectations. An early conversation will ensure that everyone has the same goals in mind. Then, focus on structuring your finances to achieve those goals. If they seem overwhelming, a nonprofit credit counseling service can help.

The professional advisors at our local Consumer Credit Counseling Services (CCCS) agency can help you fine-tune or create a budget, restructure household finances, or in managing debt. Get started building the strong financial base you need to help care for your aging parents in the best way possible.