My 72-year-old mom just told me she’s racked up a whopping $150,000 in credit card debt — and she’s retired with zero savings and lives off Social Security. How do I help her?

What can Jamie do to help?

If your aging parent suddenly confesses to being buried in debt, there are steps you can take to help — without putting your financial future at risk.

You can start by getting a clear picture of the problem. Sit down together and go through every credit card balance, the interest rates and the terms of each card.

From there, consider connecting them with a nonprofit credit counselling agency like the National Foundation for Credit Counseling (NFCC). A certified counsellor can assess your parent’s situation and may recommend a debt management plan (DMP).

You can also help your parents create a simple budget and help them calculate their net worth. Track their monthly income and Social Security benefits. List all essential expenses, such as housing, medication, utilities and food. Nonessential spending should be scaled back or eliminated.

It’s also important to understand your parent’s legal protections. According to the CFPB, federal law protects direct deposited Social Security income from most creditors, unless a court order is obtained.

That protection means Jamie’s mom may not have to prioritize unsecured debts like credit cards over essential living expenses.

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What are some realistic options?

Depending on the size of the debt, your parent’s health and available income, there are several approaches to consider, including:

• Debt Management Plan (DMP): A DMP offers a structured means to pay off credit card debt over time, often with reduced interest rates. However, the monthly payments must still be affordable. A certified credit counsellor can evaluate your parent’s financial situation and determine if a DMP is the right course of action.

• Debt settlement: Debt settlement involves negotiating with creditors to settle debt for less than the total amount due. It can work if your parents can access some cash, but forgiven debt may be considered taxable income.

• Bankruptcy Code (chapter seven): If there are no assets and no way to pay, chapter seven of the Bankruptcy Code may be an option. It can wipe out unsecured debt like credit cards. This route can offer a fresh start for older adults with little to protect, though it will damage their credit for 10 years, according to debt.org.

• Doing nothing: In some cases, especially if the senior has no assets or income beyond Social Security, they may choose to stop paying. Creditors can sue, but if there’s nothing to collect, they may be limited to sending collection letters. Still, this route carries emotional and legal stress and ruins your credit score.

If Jamie’s mom cannot pay the full debt, she’s not beyond help. With family support and professional guidance, she can get relief and restore financial peace in retirement.