🏡 How can aging parents reduce debt and cover their monthly shortfall?
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👋 Overview
When your parents reach their 70s with nearly $100k in debt and declining health, the math gets brutal. This calculator models a real scenario from r/personalfinance where a couple faces a massive monthly shortfall. See how liquidating assets and savings can stop the bleeding, and whether it's enough to keep them afloat.
💵 Income & Expenses
Your parents bring in $5,000 a month combined from Social Security and a part-time job. But their basic living costs eat up most of that before they even touch their debt.
Available for Debt
💳 Active Debts
They have $98,300 in total debt. We ignore the $36,000 in charged-off debts since those are already in default. Here are the active monthly payments draining their accounts.
Current Monthly Shortfall
🛠️ Action Plan
To fix a $1,000 monthly shortfall, you need drastic measures. Selling the second car nets $6,200 in cash and eliminates its payment. Liquidating their $15,000 retirement account provides cash to wipe out the credit cards and medical debt. Toggle these options to see if you can balance their budget.
Credit Cards Cleared?
1
Medical Debt Cleared?
1
🔗 See Also
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Calculator updated by heyfinfam (v26.9.0) · View history
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