How to Take on a Parent's Debt

If your parent is aging or in need of financial assistance, you might consider helping her by taking over her debt. In most cases, you are not legally obligated to do so unless the debt is also in your name. However, many children who have the means like to take financial stress out of their parents' lives. Do not overextend yourself financially to take over your parent's debt; help out only as much you can afford.

Instructions

1

Have a conversation with your parents about their debt. Some parents might be more open to this talk than others; some are happy to talk openly about financial issues, while others prefer to keep it private and might be embarrassed about it and hesitant to talk to you. Do not be confrontational or speak down to them; be open and honest and express your desire and ability to help them. If a conversation is not possible, speak to the person in charge of your parent's finances.

2

Make a list of all debt your parents have. List the amount due for each debt, the organization the money is owed to, the interest rate and the regular monthly minimum payment amounts. Prioritize this list by listing the most crucial debts, such as those that are past due, the most expensive or have the highest interest rate, at the top of the list.

3

Analyze your own financial situation. Look at your monthly budget and cut expenses out of your budget that you can live without temporarily, like higher priced cellphone or cable packages. Determine exactly how much you can afford each month to help pay your parent's debt without putting yourself in a financial bind.

4

Set financial goals with your parents or with their financial adviser. Keep the goals realistic. The goals provide motivation to work to pay off the debt. If your parents are still working or have the ability to work, include goals for them as far as how much they can afford to contribute to paying off their debt.

5

Contact the creditors or organizations your parents owe. Negotiate payment plans with lower interest rates if possible and set up monthly payments with them based on how much you can afford to help. You can add your name to the debt, so the bills come directly to you, though that adds more legal obligations, and if the debt defaults, then your credit will be affected.