Seniors are getting crushed under credit card debt - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Seniors are getting crushed under credit card debt

Seniors are getting crushed under credit card debt

Seniors are getting crushed under credit card debt
The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

Although credit card debts are common and most people are found struggling to cope up with them, new studies have shown that senior citizens are more at risk due to the high and increasing debts. An increasing number are filing for bankruptcy in order to get some relief.


As per the research conducted by the University of Michigan Law School, it has been found that 2/3rds of senior American citizens, file for bankruptcy due to a high credit card debt. This high credit card debt of those seniors who are filing for bankruptcy is 50% more than that of the younger adults who seek debt relief by filing for bankruptcy. The median age of those filing for bankruptcy has gone up sharply and has increased from 36.5 in the year 1991 to 43 in the year 2007. During the same time, 7% of those filing for bankruptcy were those above the age of 65. This seems to be a worrying trend according to Rodney Tullie, from CredAbility, a budget and credit counselor. This is likely to affect the future generations, as more and more Americans will be forced to file for bankruptcy in the years to come.


The medical costs seniors face has been escalating, and they also have to deal with the loss of the spouse, as well as investments that may be worth little or nothing due to the uncertainty in the stock market. During the real estate boom many seniors had refinanced home loans, but are now seen struggling with high mortgage loans and diminished values of their property. Hence today`s senior citizens are managing to make ends meet with the use of credit cards and this seems to be spiraling their debts totally out of control. These seniors now have to deal with increasing expenses every month and have no choice.


When seniors do not have any other income or assets, filing for bankruptcy might not be a good idea. Most seniors have turned to this as a last resort and to avoid hounding calls from creditors. As per the rights under the Fair Debt Collection Practices Act, a debtor can make a written request asking the creditor not to contact them. Although technically these people can be sued, in the absence of assets, creditors will have no way to collect the dues from them and government schemes such as social security cannot be touched, irrespective of what the creditors say.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Holiday Shopping is Trending

Posted: December 11, 2018

Shopping is definitely in style this holiday season with consumers, according to the new TD Bank Holiday Retail Report, on average they will be spending $530 on gifts. What are the trending gift-giving categories this season? Gift cards ... Continue reading
Some Upgrades Coming for American Express Business Platinum Cardholders

Posted: December 10, 2018

In 2019 people with the Business Platinum Card will be able to take advantage of some upgrades arriving with the new year. These new benefits are designed to boost productivity, as well as give cardholders more perks when traveling for ... Continue reading
New CENTURION Lounges in London and Charlotte

Posted: December 7, 2018

Travelers who pass through Heathrow airport when heading to London and Charlotte Douglas International Airport in North Carolina may well be happy to learn that American Express is opening new Centurion Lounges in both these airports. ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!