Elder debt is one of the most threatening things to the quality of life of an older person. Being retired with limited income is hard enough. So elderly loved ones don’t need debt on top of it. But we’re all human, and you can help with gathering documents and keeping accurate records.
Help them Make Decisions
As we age, we can lose the ability to make good decisions, which is one reason why elderly people get into debt. There are also scams that target the elderly to take advantage of them. Lasting power of attorney allows you to make decisions on their behalf, especially when it comes to money. The lasting power of attorney cost varies based on the firm, but many have a fixed fee. You can also apply to be a third-party mandate for your loved one’s bank account.
Gather and Organize Bills
One of the first things you can do is help your elderly loved one take control of bills. Gather all bills that need to be paid. You can then organize these into priorities. For example, essential bills like rent, utilities, and taxes need to be paid ASAP. You can also call on behalf of your relative to come to an arrangement for payment. Most agencies, creditors, and providers are happy to work with you as they would rather keep customers, even if you owe them money.
Help with Elder Debt Using Apps
It is a common belief that most older people can’t use technology. Of course, this depends on the person. But there are elderly people who do indeed struggle. However, apps can be a lifesaver when it comes to debt. In the UK alone, around 1 in 12 people over 70 are in debt. Apps can help keep track of debts and automate money. Quickbooks is a great example of a useful finance app. It’s easy to use and can link to your bank account to track finances.
Document Every Transaction
Quickbooks can help support financial management and track transactions. However, a simple spreadsheet is often enough. Aside from that, why not use pen and paper? The point is that you can work on a plan when you know what money is coming in and what is going out. This can be a good motivator to begin saving and spending wisely. However, documenting transactions is also legal evidence if financial irregularities appear and you are accused of something.
Keep an Open Dialogue
It can be hard to care for an elderly relative, and money is always a sensitive subject. A key part of elder care is helping while maintaining as much independence as possible. You want to help but not influence. Your elderly relative is their own person, and unless they are unable to make decisions, you don’t have the right to make decisions for them. Stay in touch and ask if they need help with anything. And always explain things clearly so they don’t feel out of control.
Summary
Helping with decisions via mandates or LPA can provide support for elder debt. Apps such as Quickbooks are also useful for tracking money, but you must help without influencing a person.