Getting Help from Parents for Paying Off Debt

Financial experts often criticize the tendency of parents to pay debts of their adult children. But there is nothing wrong in giving financial support to children as long as it is done in a proper manner so that they can get a fresh start but do not become dependent on parents.

Due to the economic turmoil of the last two years, you might be in a tight spot as far as your financial health goes. You may be thinking of reaching out to your parents but you should consider a few things before you ask them for help.

First of all, make sure that your parents are in a sound financial condition. If they are themselves in a difficult situation then you should never ask them for help. You will have to manage your finances on your own.

Consider the kind of debt for which you are asking for help. Auto loans are the most common debts of children that are paid off by parents. Other common debts from which parents often bail out their children include student loans, utility bills and medical expense related debts. These debts are considered essential and your parents will be more willing to help you with them. On the other hand, credit card bills or leisure expenses will show irresponsibility on your part. So you should approach your parents for help only for ‘good’ debts and look for other sources for repaying your ‘bad’ debts.

You should also think about how you will approach your parents. Make it clear that you only need their help once and would not be approaching them repeatedly. If you do not learn to manage your finances and keep taking support of your parents, you will end up ruining their savings. You must show that you have acted responsibly or you have realized your mistake and will make amends.

Finally, you must keep your conscience clear and approach your parents only after you have made serious efforts to repay the debt on your own. Don’t accept a gift or an interest free loan. Take a formal loan with a low interest rate, a proper loan term, and penalties, as it will add to your credibility and give confidence to your parents. You can also use social lending sites that will automatically transfer funds periodically from your checking account to your parents’ account.

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