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Debt posing hazard to seniors’ financial security

Created: On October 27, 2010 @ 6:28 pm In

Baby boomers, who once believed they had it better than their parents, are taking a hard look at their retirement savings, job security, home values and credit card debt. The bad economy coupled with long term unemployment and investment losses is threatening retirement plans for many “boomers.” [1] USA Today notes that Americans 55-64 were responsible for 16.9 percent of [2] bankruptcy filings in 2009, up from 14.3 percent in 2007. Several factors are contributing to the rise in bankruptcy filings by seniors.

  • Credit card debt: According to a study released in August, two thirds of bankruptcy filings were caused by credit card debt; consumers may use credit cards to tide them over when they lose jobs or their pay is reduced.
  • Early retirement, layoffs and buyouts: By whatever process, older Americans are losing jobs that they’ve held for years, and the resulting loss of salary and benefits can cause dependence on credit cards.
  • Medical bills: When those 55-65 lose their jobs, they can also lose health care benefits. This creates the potential for financial ruin with one accident or illness.

Debt help: Bankruptcy isn’t the only solution

Don’t procrastinate. The longer you avoid dealing with debt, the more you owe.

  • Find out where you stand: If you’re struggling with credit card debt, consulting a financial advisor or [3] consumer credit counseling and debt consolidation program can help you establish a budget and prioritize your bills. Contacting a [4] HUD approved housing counselor can help prevent foreclosure and help you negotiate repayment arrangements with your creditors.
  • Debt consolidation loans: If you have very good to excellent credit, you may qualify for an unsecured debt consolidation loan for enough to pay off credit card debt. Your success depends on your credit standing, and how much you owe in credit card debt. Shop [5] debt consolidation loans with your financial institution and online. The object of debt consolidation is rolling several bills into one loan with one payment at a lower cost. Don’t forget to compare finance charges, repayment terms and monthly payment amounts.
  • Negotiated settlements through credit counselors: Certified credit counselors can help you establish a cash based budget and work out affordable repayment terms with your creditors. You have to close your credit card accounts, and repayment can take a few years, but it’s worthwhile if you’re dedicated to getting out of credit card debt. Consumer credit counseling and debt consolidation services have helped many consumers avoid bankruptcy.

Credit card debt can be embarrassing, but debt help is available. If you need help with credit card debt, please contact a professional credit counseling service immediately.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2010/10/27/debt-posing-hazard-to-seniors-financial-security/

URLs in this post:
[1] USA Today: http://www.usatoday.com/money/perfi/credit/2010-10-25-1Aelderdebt25_CV_N.htm?csp=hf
[2] bankruptcy: http://www.debthelp.com/bankruptcy/options.html
[3] consumer credit counseling and debt consolidation: http://www.debthelp.com/debt-consolidation/credit-counseling.html
[4] HUD approved housing counselor: http://portal.hud.gov/portal/page/portal/HUD/i_want_to/talk_to_a_housing_counselor
[5] debt consolidation loans: http://www.debthelp.com/debt-consolidation/loan.html