Older americans and the problem of debt
Retirement is supposed to be spent pursuing hobbies, spending time with family and friends, and generally enjoying life without the stress of working. Yet an increasing number of elderly people are finding themselves struggling financially during the so-called "golden years".
According to credit-reporting agency Experian, consumers over 60 have an average of 5.6 credit cards, issued by both banks and retail stores. Many of those people, however, are having trouble making the payments. As Americans across the board are dealing with the effects of the recession, older citizens are being increasingly squeezed out of the workplace, either through layoffs, job cuts, or forced retirement. Add to these factors the rising cost of living, and it's expected that older consumers' debt will only increase in the coming years.
Older Americans may also have sustained more expenses than their younger counterparts. Paying off a mortgage, raising children and putting them through college and maybe even graduate school are all expensive propositions. As people age, they often experience more medical problems or emergencies, which can take a high economic toll.
Social Security, which many retirees count on as a major component of their post-retirement income, is not increasing at the same rate as the cost of living. Unfortunately, seniors do not always have substantial savings or pension plans to fall back on. Too many of them are turning to credit cards in order to make ends meet.
Other older Americans may have fallen victim to fraud. Although only 12% of the population is elderly, it's estimated that 35% of the country's fraud victims are over age 65. There are a number of factors that make elderly people vulnerable to financial scamsranging from loneliness to memory problemsחbut in most cases the victim is left with thousands of dollars of debt, which they can ill afford.
Senior citizens have several options to relieve their high unsecured debt. Debt consolidation, in which a bank loan or other secured-asset loan pays off multiple creditors and is in turn repaid by the borrower at a lower interest rate, is a good option for many seniors, whose properties can be used as collateral. Bankruptcyoften seen as an extreme measure and last-resort optionחmay also have to be considered. There is also debt settlement, a program which actually reduces the amount of debt that must be repaid to creditors yet discharges the debt altogether. Seniors, whose income is drastically reduced and who can see no way out of the spiral of debt resulting from high interest rates and late fees, can often benefit from lowering their debt balance through debt settlement.
After a lifetime spent working, it may be hard for a consumer to admit they need financial help. Pride, embarrassment or shame may get in the way; but for many older Americans, it's better to undergo debt reduction than to spend their precious retirement not only working, but worrying about how to pay their credit card bills.
Less.com is an informational website that helps those struggling with unsecured debt. The site features hints and articles about debt settlement and negotiation, and provides a form to put you in contact with debt negotiation specialists that may be able to help reduce your debt by up to 50% or more.
Article Source: Messaggiamo.Com
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