How to help my parents financially? | Plan to settle your debt faster

Imagine you are 30 years old and you become a single mother / father. You have a job that pays you a little more than 3 minimum wages per month and you should also help pay the expenses of your parents whose only income is their pension. This story is very common to find among indebted parents and is the position in which my mother was in the early 90s.

The situation formed a snowball that bordered my mother to resort to credit cards in order to cover the expenses. So in this case I can assure you that the reason for indebtedness was not bad administration, but life itself.

In total, my mother’s debt amounted to about $ 80,000 pesos divided into 4 credit cards. The first notions I have about debt are related to the crisis of 94, because the debt I had at the time doubled and my mother could not even cover interest. At that time he turned to the bank to restructure his debt.

Developed a plan to settle your debt faster

Developed a plan to settle your debt faster

From that moment, in my memory it is always that she had to allocate part of her salary for the payment of the cards, of which she almost always paid the minimum, of course. The money needed to cover expenses came back out of the cards, which put us in a vicious circle that lasted for years.

My mom never tried to cover up the problem. He even talked with me about the various options I found to reduce it a bit. As consolidation, an alternative that came from one of the banks where he had debts and that allowed him to collect them all in one account. We thought it was a good idea and we carried it out, although I don’t remember very well why we only put together two debts and not the total. So the problem was reduced a little.

As a daughter I always felt that the problem was both and that I had to assume the corresponding responsibility. Well, from those cards I had the computer and the books I studied, the clothes I needed to wear and even some tastes that my mother had wanted to please me.

So when I left university and began to be an economically active person, we developed a plan to settle your debt faster. This was about paying the minimum of all cards, except the one with the smallest debt or the one that generated the most interest ; greater efforts would be devoted to that card. Once that first card has been liquidated, we apply the same plan with the following one that meets one of those criteria and so on until we finish all of them. With this plan it took us about 36 months to settle all accounts.

I didn’t know what a credit repair company was until I went to work on Solve Your Debt. Without a doubt, we would have resorted to this method of having known it before. This would have allowed us to recover tranquility and our economic stability in less time.

Person to overcome their debt process

Person to overcome their debt process

The day we cleared the last card we went to eat after leaving the bank. And walking felt like we had lost kilos and kilos of weight, something like what $ 80,000 in 10-cent coins should weigh.

Thanks to this situation, since I was young I have been related to issues related to personal finance, such as saving and the importance of having a budget. I fight ant expenses all the time and against the urge to spend my money on things that I don’t really need and are not planned. Yes, not everything can be planned, such as medical emergencies; but those holidays, the new model of the cell phone that you like so much and even that possible concert of your favorite band can be contemplated for this new year in advance.

Overindebtedness will always be a difficult situation and more if there is no open communication about it. On many occasions parents are not usually very clear with family finances but, as children, we can always somehow intuit what happens and see how to contribute.

If you are reading this, you are in this situation, I recommend that you approach your parents and show interest in knowing the real state in order to generate an action plan. Feeling the support of children and / or other family members is essential for a person to overcome their debt process.

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