Should children take loans to repay parents' debt? A son's dilemma about clearing father's Rs 40 lakh debt leaves internet divided

Family and money can be one of the hardest combinations to deal with. While many people believe children should step in when parents are in financial trouble, others argue that doing so should not come at the cost of their own future. A recent Reddit post brought this dilemma into focus after a young employee asked whether he should take a Rs 40 lakh personal loan to help his father clear mounting debts.

In the now-viral Reddit post, the employee explained that his father had borrowed nearly Rs 50 lakh from local lenders during the Covid-19 pandemic after his business suffered losses.

The user said his father informed him about the debt in 2024 and had since been asking for financial support every month. According to the post, the son has already contributed between Rs 50,000 and Rs 1 lakh every month and has given his father nearly Rs 20 lakh so far.


Now, his father wants him to take a Rs 40 lakh personal loan because bank interest rates would be lower than those charged by local lenders.

Sharing his financial position, the Redditor wrote, "I have around 45L in total savings + investments. Earn around 2L in-hand per month right now."

He added that his father believes the family property, estimated to be worth around Rs 5 crore, would eventually come to him, making the sacrifice worthwhile. However, the father does not want to sell the property because he fears buyers would offer less after learning about the debt.

The son, meanwhile, said he had plans to save for his marriage and buy his own house. He admitted that using all his savings or taking such a large loan would delay those goals by at least two to three years. He also questioned whether there was any guarantee the financial situation would actually improve, ending his post by asking, "What should I do? Appreciate any suggestions."

Internet urges caution before taking any loan

A large section of Reddit users advised the employee not to rush into taking a personal loan. Instead, many suggested that he first understand the full financial picture before making any decision.

One of the most upvoted comments said, "Transfer the property to your name and take a loan with the property as collateral. Your property will be safe, your savings would be safe, and your parents won’t blackmail you for more money since you can tell them you have a monthly loan obligation."

Several others agreed with the advice and said he should first verify whether the family property had already been pledged for another loan.

One commenter wrote, "Ask him to transfer the property to your name and say that's the only way you can take a loan. Check if he has already taken any loans on the house... Don't trust him just bc he is your father."

Another user urged the original poster to collect every financial detail before stepping in, writing, "Collect all data. How many loans, from whom, at what rate. Get data on all assets too. Make sure you get the complete picture before you get involved."

A self-identified banker with over two decades of experience also suggested exploring a loan against property instead of a personal loan if the property was genuinely worth several crores.

Many shared painful personal experiences

The discussion also saw many Reddit users sharing stories from their own families, saying they had taken on parents' debts only to face long-term financial problems themselves.

One person wrote, "Don’t take the loan, I did that for my dad, he could not clear the loan and instead reinvested in business which failed as well. Both of us ended up defaulting, and eventually it took 10 years to clear his mess and my mess."

Another user shared that after clearing family loans, helping with marriages and building a house, they were left with no savings and later found themselves burdened with fresh debt.

Others argued that helping someone with poor financial habits without changing the underlying problem could lead to the same situation repeating in the future.

Others say family comes before money

Not everyone agreed with the cautious approach. Some users felt that parents deserve support during difficult times if their children are financially capable.

One commenter wrote, "Bro, I'll give you some unpopular advice that I might get hate for. Clear your dad's loan. What's the point of earning if you can't help your parents?"

The same user added, "I genuinely think that if you're in a position to help and choose not to, it's something you may regret later... money does matter but family matters more."

However, even some people who supported helping the father suggested that the son should take control of the family's finances afterwards or ensure that no further debt was accumulated.