With retirement looming, economic uncertainty and the savings of many parents slowly accumulating, few are ready for : KIDDERS, “Kids in debt, diligently eroding retirement savings."

In the good times, parents encouraged their children to buy homes, investment units, enter business deals, invest in shares and generally “do it” in order to get them off their hands.

As these financial arrangements unravel, their kids need money to stave off banks or other financiers. Kids who find that they can’t walk away from their problems are turning to their parents to “fix it”.

Here are 5 “tough love” options for parents to adopt to protect themselves and their kids:

1.    Sometimes it is better to let your kids go bust and be around to pick up the pieces.

2.    A threat to be sued is not the same as being sued and sometimes suing or being sued can be a slow process, so do not be spooked into action that you may regret.

3.    Document and try to secure any loan.

4.    Don’t panic and use your available cash and credit cards to pay your kids’ debts, you may need that cash and credit for essential items as the   situation gets worse.

5.    Signing a guarantee may take the heat off but it is the easiest way for you to lose your savings and your home. Creditors will pursue your kids harder if they think you care and that you may foot the bill so pretend that you do not care (you will find this is easier than you think).

Most parents devote their lives to solving their kids’ problems e.g. car crashes (especially if it was the parent’s car) or making the occasional visit to the police station to bail their kids out.

However, when asked to make the ultimate sacrifice of delivering up their entire life savings the best advice to loving parents is "don't."

©   Paul Brennan 2009-2017. All rights reserved.