Older Americans are caught in a financial crunch
July 30, 2009
According to a recent USA Today article and a survey by Demos, consumers 65 and older are carrying an average of $10,235 in credit card debt, up 26 percent from 2005. Reduced retirement savings, rising medical costs, and fixed incomes are leaving many senior citizens feeling hard-pressed for cash - forcing them to rely on credit cards to manage day-to-day expenses.
With as many as 9.5 million retired Americans trying to rejoin the workforce, it’s evident that this population has been hit especially hard by the recession. According to AARP, a quarter of the one million Americans that filed for bankruptcy last year were age 55 and older, which implies older consumers are feeling financially vulnerable and desperate.
The experts at Money Management International (MMI) offer the following suggestions to help senior citizens get out of debt and stay out of debt:
Prioritize your debts. Some debts are more important to pay promptly than others. For example, you must continue to make mortgage or rent payments so that you do not lose your home. You must also pay utilities and provide food. Also, be careful not to let your insurance coverage expire – both medical and personal.
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