The most common source of debt for senior citizens is health care costs. With often only a fixed retirement income to sustain them, many elderly people turn to lenders for assistance to cover health care and long-term housing expenses. Finding legitimate debt help can keep senior citizens out of financial difficulty, while managing the everyday costs associated with aging.
Increasing Debt
As of 2011, senior citizens make up a segment of the American population with the fastest-rising credit card debt. Among those 65 and older, the average credit card balance increased 149 percent from 1995 to 2004, according to Sharon Shaw Elrod, MSW, EdD in her article published on SeniorCitizenJournal.com. With the rising cost of health care, gas and energy bills, senior citizens on fixed incomes are often resorting to using their credit cards and other loans to pay for everyday expenses like prescription drugs, doctor visits and unexpected expenses.
Government Assistance
The American Association of Retired Persons (AARP) provides a "Benefits QuickLINK" on their website as a free online financial tool for senior citizens, which can help them find and apply for government benefits. Just a few of the programs for which seniors can find eligibility and application information include Medicare savings programs, state pharmaceutical assistance programs, state property tax relief, low-income home-energy assistance and supplemental security income.
Government Grants
Government grants, which do not have to be repaid, are available to senior citizens, most often through organizations that provide care and assistance to the elderly. Seniors may be able to qualify for these individual grants if they meet the specified requirements. The types of grants available for senior citizen debt help consist of debt assistance, housing assistance, educational grants and funds to start a business. Grants.gov provides more information about available government grants, eligibility requirements and the application process, or senior citizens can peruse a list of thousands of opportunities found in the Catalog of Federal Domestic Assistance (CFDA) available by mail or in downloadable PDF form at cfda.gov.
Private Assistance
Numerous charities, funded by private citizens, provide financial assistance to senior citizens who are having trouble paying all their bills. Seniors can free up more funds to pay down debt by getting help to pay heating and utility bills through charities such the American Red Cross, Operation Round Up (offered by many gas and utility companies) and United Way. NeedHelpPayingBIlls.com provides a detailed listing of nationwide charities and organizations that can help pay bills and reduce debt.
Reverse Mortgage
An increasingly popular alternative for senior citizen debt help is the reverse mortgage. A reverse mortgage allows seniors to use the equity in their homes without having monthly mortgage payments, and the loan on the home is not due until they die or move out of the home for a period of more than 12 months. The lender gives the senior a mortgage based on his age or life expectancy and the appraisal value of the home. The applicant can choose to receive the funds as one lump-sum, in monthly amounts or as an interest-earning equity line of credit.
0 comments:
Post a Comment