There’s a Solution for My Mom’s Limited Retirement Money. It Goes Against What I Was Raised to Believe.

Pay Dirt Photo illustration by Slate. Photo by Irina Gutyryak/Getty Images Plus. Pay Dirt is Slate’s money advice column. Have a question? Send it to Kristin and Ilyce here. (It’s anonymous!) Dear Pay Dirt, My mother is 83, fairly healthy, has no debt, and lives modestly to frugally on a fixed income (Social Security and a small pension). She rents an apartment and has no assets to speak of. There are some months when she overextends (due to medical expenses that pop up or the bane of inflation), and she must dip into her depleting savings (about $15,000). Without my support, at this rate she will likely deplete her savings in eight years or so (if all current variables remain the same, which I know is not assured). My partner says there’s an easy fix. I’m not so sure. Many years ago, we worked to get her credit card debt down to zero, which is where it has been for four years now. She pays for most things using her card, then pays the full balance each month. My question: At this point, does it really matter if she regains credit card debt? My partner and I are in disagreement about this. I was raised to believe that paying interest was to be avoided whenever possible, and I’m glad she has gotten things to balance zero. But my partner suggests that, in the end, any credit card debt she has when “the time” comes will cancel itself out (we live in a state where survivors are not held responsible for parents’ debt). What do you say? Is it OK to just let her breathe more easily by making a lesser, or even the minimum, payment and not worry about the growing balance since in 10-15 years it may be a moot point anyway? —To Charge or Not to Charge Dear To Charge or Not to Charge, Your partner has a point, but it might not be that simple. They’re right that, when someone dies and they’re still carrying debt, that debt usually becomes part of their estate, which means creditors can make claims against the estate to pay it off. But if there’s not enough money to cover the debt, that debt simply goes unpaid. The problem is, while your mother is still alive, being in debt still comes with a handful of risks. Long-term care, unexpected medical expenses…these can quickly become huge sources of stress for older people. So if your mom gets trapped into credit card debt now, she may have less flexibility to handle those expenses in the near future. Plus, credit card interest rates are notoriously high. If she can’t keep up with the minimum payments, she might be opening herself up to collection calls, lawsuits, or snowballing late fees. Even if the problem is mild, her credit score could drop, which might affect her in unexpected ways, like limiting housing options if she ever needs to move out of the rental and into another place. If your goal is to let her breathe easy, could you help her build a tighter, more predictable monthly budget? Or explore certain benefits she may qualify for—food, medical, or utility assistance? If you do decide to encourage her to carry a credit card balance, you should at least try to get her interest rate as low as possible. You could call her existing card and ask for a lower rate. Or consider a low-interest card at a credit union. I totally understand your desire to give her some financial breathing room, but intentionally going into credit card debt doesn’t seem like the best way to go about it. —Kristin Please keep questions short (<150 words), and don’t submit the same question to multiple columns. We are unable to edit or remove questions after publication. Use pseudonyms to maintain anonymity. Your submission may be used in other Slate advice columns and may be edited for publication. More Money Advice From Slate Last year a close friend sought my advice on something, and inadvertently revealed they’d basically stopped paying income taxes a few years ago. What had once been their cash-based “side hustle”—coaching individuals in a high-cost sport—on top of their full-time job had turned into their full-time job. They’re basically being paid cash by clients and not reporting any of it to the government. Never miss new Slate Advice columns Get the latest from Prudie and our columnists in your inbox each weekday, plus special bonus letters on Saturdays. Advice Personal Finance