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Asked about “Credit Reports - AOL Money

Finance: Should parents pay of kids' debt?

I have a lot of debt from university and some from credit cards.  Is it fair for me to ask my parents to help me pay off my debt?  They have the money and my life would be a lot easier.  I want to know if it's OK to ask though.  What do you think?

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2159 thumbs up

The journey to an improved lifestyle begins with the first step.

Confident Lifestyle 

Confident Lifestyle Blog 

Tiptop Server 

 

Yes and no. Yes it may be alright to ask your parents for help if they are financially able to help, but to be fair and honest you should only accept the money/help from them if it is a loan and you have a contract stipulating how you will pay it back. The money you think your parents have could be funds set aside for their retirement years and may be depending on that for future living expenses.

The no part is that if you ask your parents for help you are not accepting the responsibility of the credit woes you created by not using your credit cards wisely. It has been proven that those that turn to family and friends for financial help will keep on spending and using credit foolishly.

 

It would be best for you and your credit/financial education to work out a solution on your own. Start by creating a budget and a payment schedule to pay off your loans in a timely fashion. You may want to consult a credit counselor to help you set this up. Be sure to also pay yourself out of every paycheck you receive by depositing money into a 401k, IRA or even mutual funds.

I would also like to have you read two books that will help you with your financial education. The first one is Rich Dad, Poor Dad by Robert Kiyosaki and the second is Stay Mad for Life by Jim Cramer. Both are excellent primers for securing your financial goals and responsibilities.

 

Here are also a few links links that  provide you with some great information.

Budgets: http://confidentlifestyle.com/Documents/family_budget.pdf

Credit Scores: http://confidentlifestyle.com/Documents/fix%20credit.pdf

Credit Counselors: http://www.nfcc.org/

I have faith that you will find the solution and will start planning for your future.

 

Good luck and best wishes. 


Posted 5 months ago ( permalink )
In reply to NopoliBeen's question
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Tiptopmanager is right.  I also have 2 excellent books to recommend for you to add to your personal finance library.  Both of them are by the same author, Mary Hunt.

Debt Proof Living

Live Your Life for Half the Price

Ms Hunt paid off over $100,000 in credit card debt in 13 years and is the main source of all the finance advice I've been giving on this website.  Through her books she has become my own personal financial advisor.


Posted 5 months ago ( permalink )
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92 thumbs up

We're not retreating... we're advancing in another direction.

-General Douglas MacArthur 

i missed seeing you on the site tiptop.  thank you so much for your answer.  it's good to have you back. 


Posted 5 months ago ( permalink )
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2159 thumbs up

The journey to an improved lifestyle begins with the first step.

Confident Lifestyle 

Confident Lifestyle Blog 

Tiptop Server 

 

That was sweet of you to say NapoliBeen. I have missed being around and reading all the great questions and answers.

I am hoping to start being able to spend some more time here again, between work and taking a couple of classes, it has not left me much time to visit Yedda and all the great people here.

 

Take care and best wishes. 


Posted 5 months ago ( permalink )
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Not much to add from the above.

Yes, it's ok to ask, and be prepared to hear the answer no.  You should have a back up plan. 

 


Posted 5 months ago ( permalink )
In reply to NopoliBeen's question
JtotheA was invited by Yedda to answer this question.

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