We often dial the number of our parents for guidance and support during the difficult phases of life. They make every effort to help us overcome the troubles because of unconditional love for their children. Though, there may come a time when they are on the receiving end of financial troubles with limited sources of income.
You may feel tempted to help your parents with the key to your savings account. But the situation is not easy if you are already struggling with student loans and credit card bills. Moreover, they can reject your proposal to help because of the unreasonable embarrassment of asking children for money.
How to Help Parents with Financial Troubles
You don’t have to offer cash to help your parents with their financial troubles. It will keep their financial independence intact without the awkward conversation. Though, it may require a lengthy discussion to convince them if they are extremely stubborn.
Assist with the Loan Process
You can assist your parents with the loan process if they can repay it. It will help them manage the financial trouble on their own with no stress on your budget. Here are remarkable pointers to assist your parents in getting a loan after their retirement.
- Co-Sign the Loan
You can help them increase their eligibility for a loan by signing as a guarantor. It will give assurance to banks for timely repayment. Also, the available loan amount will increase for the loan application based on your profile.
You are accountable for repaying the loan if they miss the payments for a considerable period. Thus, make sure they can afford the amount before applying for a loan. It will help them get a better interest rate to make the repayment affordable.
- Contact a Direct Lender
You don’t have to become a guarantor to help parents get a loan. Direct lenders are excellent choices for financial organisations such as banks and credit unions. They will provide a personalised offer to help your parents get through the financial trouble.
The repayment plan is flexible, with the option to extend the term or ask for a repayment holiday. The process is easier when compared to banks to file the application and get approval. Therefore, you should contact a direct lender instead of banks to get quick loans in Ireland with no guarantor.
- Become the Lender
The interest rates will create unnecessary stress on the financial condition of your parents. Apart from the processing fees, the lenders may include more charges to increase the overall cost. If possible, you should offer money to your parents as a loan to help them save money.
They will not feel financial dependence on you since the amount offered will be a loan. You can ask them to sign a paper to clear the circumstances and make the method look formal. They can decide whether to pay the interest and other details of the loan.
Increase Their Income
Another method to help your parents manage the financial trouble is to increase their income. Give them the advice to find sources of passive income such as renting the extra space or car. It will help them with a sudden increase in their medical bills or unexpected expenses.
You can also get them a job in case the reason for financial trouble is unemployment. Let them accomplish a task you have been delaying for a very lengthy time. They don’t have to repay the amount if they have earned it through their skill set, experience, and hard work.
Alternatives of Cash
The above methods may not work in every situation as loan repayment and job is difficult for people after retirement. Still, there are ways to help your parents without offering them cash. You can try the following as an alternative to cash to maintain your parents during a challenging phase.
- Gift Cards
You will find gift cards from various service providers as the ideal form of monetary help. They will take it as a gift from their children instead of help. Therefore, the awkward conversation with you trying to convince them may not take place.
- Advice and Guidance
Generally, the parents offer guidance from their experience to help us overcome the troubles. But it is okay to reverse the role for the first time with them on the receiving end of the guidance. Help them with advice or suggestions to find the solution to the problem instead of offering monetary assistance.
Your profession may come to their use more than the gift cards or sign as a guarantor. Lawyers can help their parents with legal advice, while financial matter experts are helpful with fund management.
- Bill Payment
Bills are the major source of stress during the financial short-term financial troubles. The lenders and service provider may create problems if you’re parents are unable to clear their dues. You can pay them to provide temporary relief while they try to overcome the trouble.
Ask them to move in with you to eliminate the stress of the essential expenses such as food and utility bills. They will enjoy the association of their child to redirect their mind from stressful circumstances. And they can move back to their house if they are comfortable living without your support.
To sum up, multiple ways to help your parents with financial struggles are available based on their requirements and preferences. You must begin the discussion as they may not feel relaxed asking for cooperation. Also, do not let the financial support hurt their financial independence if they are willing to repay the amount.