CHOICES Corner
Consumer debt held by older adults has grown significantly in recent years. At a time in life when most people envisioned enjoying retirement and settling into the next phase of life where working to support oneself is finished and retirement on Social Security, employer related benefits and personal savings would permit a bit of traveling, relaxing and exploring new opportunities, instead 73% of people over the age of 60 are outspending their annual income by $4000 and are dipping into savings and using credit cards to cover the shortfall. Currently, 60% of credit card debt is held by older adults.
Why are so any members of this generation of older adults in such poor financial condition? The combination of sharp increases in the cost of basic needs such as housing, food, heat & utilities and health care in combination with living on fixed incomes that have no room to accommodate cost increases produced credit card reliance that has spurred the debt crisis. Older adults are using credit to cover basic living needs. It doesn’t take long for this spending pattern to result in economic crises for individuals who are unable to make minimum monthly payments to creditors.
If you are an older adult with credit card debt, and are unable to make monthly payments required by the credit company you need a strategy to resolve the debt issues and a plan to prevent future credit card problems. The CT Consumer Law Project may be able to help you if you are receiving calls and letters from credit card companies or banks about your mortgage. There are some protections in the law that may help you and there may be some programs that can improve your financial situation such as programs that help reduce healthcare related costs, fuel assistance programs, rental rebates, SNAP food benefits.
You can contact the Consumer Law Project by calling this number. Their services are free and confidential to a consumer 60 years of age or older.
1-800-296-1467