Debt is increasing at an ever growing pace. It is affecting many people from all walks of life. One demographic group to be affected is that of seniors. It is a disturbing trend. Senior citizens are resorting to using credit card debt to pay for basic expenses. One frustrating problem is the cost of medical care. . An increasing number of the nation’s elders are putting their homes, retirement savings and livelihoods at risk to pay the bills. The question is whether seniors have been blindsided by the consumer juggernaut or are they simply not prepared for retirement expenses. Senior citizens need more education to help them navigate through the different options of managing money rather than deplete their resources. According to AARP, retirees are facing some serious financial hardship.
•One-third of retirees described their current personal debt levels as a problem, and 7% called it a “major” problem.
•The number of people age 65 and older who filed for bankruptcy jumped 213% between 1992 and 2001, outpacing all other age groups, one study said. Health-care costs drove the trend.
•Debt levels for households headed by someone 75 and older averaged $20,234 in 2004, a 160% jump from 1992, the Employee Benefits Research Institute reported.
Many retirees have simply underestimated the costs they would have during their retirement years. Some have faced difficulty with the rising price of healthcare. I believe as more people reach retirement age, the press for change in the healthcare arena will become a top priority.
Many seniors have concluded that there are no options to help them navigate through the process of debt negotiation, or in more serious circumstances bankruptcy. The best thing to do is to consult with a financial planner who has expertise in helping seniors cope with these types of issues. If you feel that you are in this predicament and are a student of Prosper make sure you address this with your financial coach. He or she can guide you to resources which will help.
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