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Helping Your Elderly Parents With Their Finances

Nicki CawoodOctober 22, 2020

Watching your parents get older can be rough. They were once capable go-getters with seemingly endless energy, and are now becoming more vulnerable, older and less able to take care of themselves. Although this is a natural process we all undergo in our lives, seeing those you love become weaker can take its toll on our emotions. It can also strain our relationships with them; as they become older and more set in their ways, it can be difficult to negotiate. Helping your elderly parents with their finances is something that you should get advice on so that they are safe, protected and have what they need and want.

One thing that many people struggle with when it comes to their aging parents is discussing their finances. Some elderly people become pretty intransigent and traditional, refusing to talk about their money or make provisions for their future. It is vital that elderly people make provisions for their future care, in case they become unable to take care of themselves and need to explore elderly care options. But how can you approach the touchy subject of money with your elderly parents? Here are a few handy tips.

Involve A Professional Advisor

One way in which some elderly people can get on board with speaking openly about their finances is if they do it with a professional that they trust. For example, their accountant, who they trust with their finances year after year, could be a helpful person to consult when discussing your parents’ financial future. Although they love you, they might listen more carefully to a professional accountant whose involvement in their life is not an emotional one, but a practical one.

Helping Your Elderly Parents With Their Finances: Encourage Them To Do It Themselves

Some elderly parents become defensive about money if they feel their kids are taking over. For vulnerable people, agency is vital. Feeling like you aren’t in control of your own life can make anyone feel defensive and angry, and this is often felt by those whose families are pressuring them to make financial decisions. In this case, encourage your parents to look into their finances on their own – and just let them know that you are happy to be of assistance if they want you to be. This takes the pressure off them but still pushes them in the right direction.

Be A Protector

Unfortunately, there are people in this world who will take advantage of a vulnerable, seemingly “gullible” older person. This might be by undervaluing their home, encouraging them to buy insurance they might not need, or even outright stealing from them. One way to help your parents with their finances as they get older is to act as a protector from this kind of awful conduct. Explain to them that they should involve you more in their financial decisions so that you can double-check they aren’t being taken for a ride by an unethical businessperson who has seen them as an opportunity to make quick cash. By doing this, you not only help your parents keep their money safe, but also encourage them to be more ruthless with those they spend their money on.

Helping Your Elderly Parents With Their Finances

Please get up to date advice on how you can effectively support your parents with their finances, legal matters ad everything else, acting as an advocate on their behalf the right way.

In Finance

Your Credit Score & Why it is Important

Nicki CawoodFebruary 26, 2020August 13, 2020

There are many reasons that someone might have bad credit. This can impact whether you are accepted for loans in the future, for mortgages, will impact the interest rates you are offered and more. You could also be turned down for credit. I look at what your credit score is, what it means, what affects it, how you can improve it and what to do if you need a loan when you have a low credit rating.

What is Your Credit Score

Your credit rating paints a picture of where you are financially and how you manage your money. This is important because lenders use your credit score to determine whether or not they think you would be a risk as a borrower. Decisions about what financial products are available to you are based on this. The information that makes up your credit score include how much outstanding credit you currently have, whether you have any late payments, missed payments, defaults, CCJs and other financial arrangements. Only paying the minimum payment on your credit cards, for example, can alter your score.

Keeping Your Credit File Up To Date

You can access your credit rating via services such as Equifax and Experian for free. If you want more in-depth information about what makes up the score, a monthly subscription fee is payable. This information can be very useful as it helps you pinpoint what might be affecting your score. Your credit score file may have information that is wrong or out of date and it is up to you to make sure that this is rectified. When searching for credit for your car, a loan or even student loans it is essential that your credit score is up to date and doesn’t let you down.

Causes of Bad Credit

A low credit score may be caused by many things. If you don’t stick to your payment agreement, are late, if you have defaulted or even if you fall victim to identity theft, you can be vulnerable. If you have never had credit before your score might be low. This isn’t because you are bad at managing money, it is because you haven’t shown that you are good at it yet. Each lender has their own algorithm when it comes to lending on top of your credit score but what your file shows them does make an impact on lending decisions.

When You Need Credit But Have a Bad Credit History

Frustratingly it can be really hard to get what you need from lenders if you don’t have the best credit score, even if it isn’t necessarily your fault (lack of credit experience, identity theft etc). What then do you do if you need a loan to cover house move costs, a holiday, want to consolidate debt and so on? There are now loans from lenders who specialise in bad credit loans. The interest rates tend to be somewhat higher yet it is possible to find decent deals, which for a much-needed loan, is good news. Make sure that you shop around and check interest rates, fees and so on properly, as you would with any financial product.

Moving Your Credit Score Forward

If your credit score is poor or could be better take the time to find out why and work to remedy it. You never know when your circumstances might change, when a loan might be needed, and it’s best to have a credit file that is up to date and moving in the right direction to help you get accepted for the most competitive financial products in the future.