The recession has been pretty hard on senior citizens. The number of senior citizens who are applying for bankruptcy has increased significantly and most of this is due to the high costs of medications, crash in the stock market, and a decline in real estate value etc. All these are the contributing factors and in a desperate attempt these senior citizens have turned to credit cards to decrease their expenses. But now they are being burdened with huge debts and these are the type of debts that they will not be able to clear in their lifetime. This is forcing them to file for bankruptcy.
At least half the senior population today is retiring with debts, but less than 5% are willing to delay retirement plans to be able to clear their debts. This is a worrying trend as more seniors being harassed by creditors, and their family members will be convinced or bullied into paying their debts by these creditors. Although after a person`s death the survivors are not legally obliged to pay, they may be cajoled into doing so.
Creditors will not have too many options to force seniors who have no assets or source of income to force them to pay up especially if they are living on pension or social security. However, one cannot escape the harassment on the phone as creditors will hound them with phone calls and finding credit in the future might be virtually impossible.
However, seniors are not really using their plastic to pay for luxury items such as cruises or golf clubs. Instead, they are purchasing medicines, the cost of which has gone up steadily and have continued to rise.
So how does one curtail spiraling debts while nearing retirement? The only solution to that would seem delaying retirement to be able to deplete their huge debts. Seniors must also resist from drawing their social security in order to maximize the amount they could get every month, states Gail Cunningham from National Foundation for Credit Counseling.
Seniors are seen struggling with their debts and those who`d wish to leave some inheritance to their children, find it troublesome. Though creditors cannot force children to pay for the debts by their parents, they can still come after the estate to collect the debts. Hence, postponing retirement is a good idea.