Credit card debt for senior citizens jumped 217 percent between 1994 and 2004. Even though seniors tend to spend credit on essentials, such as food and utilities, there's little help for them that's not available to anyone else. Unlike younger people, senior citizens are more likely to have the ability to ignore the debt with few consequences.
Considerations
Seniors may be able to ignore debt because they often have no assets, such as a home, that lenders can pursue in court. If a senior is judgment proof, creditors frequently write down the debt as noncollectable. Creditors can't pursue certain assets, such as life insurance policies. Thus, it usually doesn't make sense to tap savings to pay off debts, according to Aleksandra Todorova of Smart Money. A similar option would be bankruptcy, but bankruptcy requires filing fees and, typically, legal fees for a lawyer.
Credit Counseling
Credit counselors often offer free services to the elderly. The counselor may help the senior refine his budget, which may leave enough disposable income to tackle the balance on the credit card. He may also advise the senior of the best way to eliminate the debt in case the senior can't afford the debt at all. For instance, he may suggest negotiating with creditors to settle the account for a fraction of the balance.
Government Help
The government and private charities may offer the elderly assistance to help pay for essentials, which may open up enough in a senior's budget to pay down credit card debt. For instance, nearly everyone that reaches the age of 65 qualifies for Medicare medical assistance. The Department of Housing and Urban Development may issue housing vouchers if the senior makes below a certain income.
Tip
The credit card company will probably agree to certain concessions if the senior tells the company about her problems. Even if the credit card company doesn't agree to a debt settlement, it may defer payments for a few months or reduce the interest rate on the balance. The senior can convert equity into cash with a reverse mortgage, but she risks losing her home.
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