There continues to be a rising problem concerning the debt of the elderly. As cost of living expenses rise, the elderly are using credit cards to help make ends meet. Pensions do not rise and Social Security has barely risen more than a percentage, which leaves very little room to take care of rising costs without using credit cards or draining savings accounts. There are a third of retired people utilizing Social Security as 90 percent of their income. This reflects upon the serious problem with debt and the elderly. Credit cards are becoming a way of life and the debt continues to rise.
The elderly need solutions to help them take care of debt problems. Some of the debt is created out of confusion pertaining to not understanding the correct way of handling payment methods. There are many scam artists who are targeting the elderly and cashing in on their confusion. Keeping the elderly safe from scams and educate them with alternative ways to handle their expenses. Further assistance will be needed to correct what has already accumulated.
How can the elderly help prevent more debt and pay off the current accrued debt?
- If the elder is using a credit card to pay for visits to the doctor, clinic, or hospital, talk to the billing departments and see if a payment plan can be worked out. The interest savings alone would be beneficial to the long term debt.
- If the elder person is a homeowner with low or no mortgage, a reverse mortgage could be a possibility. This mortgage will turn their equity into income for the retirement years.
- If the elder person is confused with finances, take away their credit cards and notify the creditors. Financial power of attorney is a good security to have in place at any age.
- Make contact with the creditor through a letter and request “debt forgiveness”. If the elder has assets or is not on Medicaid, the creditor may turn down the request. If this is a case, ask for assistance with lowering interest rates.
- Consumer Credit Counseling Service located in your area may have programs to help.
- Contact The National Association Of Elder Law Attorneys (NAELA). These lawyers especially focus on problems concerning the elderly.
- Look for drug affordability programs to help with the costs of prescription drugs. Drug companies, pharmacies, and prescriptions drug cards from Medicare all offer programs to help.
- Many states offer discount programs for the elderly which will provide relief with property taxes.
- The U.S. Department of Energy offers assistance with home heating. There are other assistance programs that can be applied for directly with energy and gas companies.
Credit cards are an easy way of taking care of bills quickly, but the high interest rates and long term balances are proving to be big problems to the finances of the elderly. Pay down the debt, especially credit cards, as much as possible and increase your savings each month to help prepare you for your retirement.
Spotya! Payday Loans cares about consumers and their debt. We only offer loans for a small percentage of the customer’s earnings. Responsible lending will help people stay out of debt.
