When you’re battling debt, finding a way out isn’t always easy. In some cases, that may make you wonder if heading back to your parent’s home is a smart move. After all, it’ll likely help you reduce your expenses dramatically. However, it can also create challenges. If you’re considering it, here’s a look at whether there’s ever a good reason to move back in with your parents to pay off debt.
The Benefits of Moving Back in with Your Parents to Pay Off Debt
Generally speaking, the benefits of moving back in with our parents to pay off debt are reasonably clear. First, you’ll usually get a chance to save money. Even if you’re paying rent, covering part of the utilities, and handling your own food and insurance, you’ll likely pay less than if you lived on your own. That gives you more cash to send to your debts.
Second, you may get some much-needed emotional support. That’s particularly true if you’re cutting out all extraneous spending to make debt repayment faster. By being with your parents, you’ll get opportunities to socialize. Plus, you may get a few perks – like access to entertainment – that you otherwise couldn’t afford, making a tough situation a bit easier to navigate.
Finally, it may give your parents a bit of a financial boost, too. For example, if you’re paying rent, they’re spending less on their housing costs. That could let them conquer some debt, set more money aside for the future, or otherwise get financial ahead.
The Drawbacks of Moving Back in with Your Parents to Pay Off Debt
When it comes to drawbacks, the strain it can put on your relationship is one of the biggest. While moving back in for a short time may be fine, an extended stay may lead to frustration. Your parents may have looked forward to an empty nest, or you may feel restricted by their rules. In either case, things can get uncomfortable quickly.
There’s also a chance they’ll feel taken advantage of, particularly if there’s any spending on your part that they find questionable. For instance, you might view a night out as a way to relax, while they think that money should go to your debt so that you can move out faster.
If you’re not paying rent or covering your expenses, moving in means you’re also placing a financial hardship on your parents potentially. Unless their income level is high, covering your costs could represent a significant strain on their budget. If so, that may lead to resentment, as well as long-term financial trouble for them.
Is It Ever a Good Idea to Move Back in with Your Parents to Pay Off Debt?
Generally speaking, there are good reasons to move back in with parents to pay off debts. However, you need to weigh the drawbacks, too. That way, you can ultimately make the best long-term choice.
Do you think there’s ever a good reason to move back in with your parents to pay off debt? Why or why not? Did you decide to move back in with your parents to conquer a debt issue? Do you feel that was the right choice in hindsight? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.