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Credit Card Debt During Your Golden Years

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by Fred Milbourne
(St Augustine, Florida, USA)

Unfortunately, credit card debt is not just a problem for teens and young adults. More and more retirees are finding themselves deep incredit card debt!.

If you are older, do not think that credit card debt can not happen to you or will not effect your loved ones when you pass away.

Credit card debt is a major burden during your life and for your family members who take over your finances. Make smart decisions with your money as you age-stay out of credit card debt!

Senior citizens find themselves in credit card debt for a variety of reasons. First of all, many do not realize that their social security checks from the government will not cover all of their expenses.

Without savings, it is nearly impossible for senior citizens to survive on social security. In fact, experts say that social security will probably only cover 1/3 of your monthly costs. Plan ahead. Even if you are still decades away from retirement, start saving now! That way, you will not have to rely on credit cards to get you out of debt.

Another problem many senior citizens face is the growing cost of health care. Health insurance can be quite expensive and prescription medicines can put you into debt if they aren’t covered by your insurance.

Before your health is a problem, learn about your health insurance options and sign onto a plan that will keep you covered as you age. Also, ask your doctor for alternatives to brand name medications, since these can be less expensive.

Many seniors live above their means. When you retire, you may want to travel, eat out often, and take up new hobbies, which can all get to be very expensive. Learn to track your monthly income with a budget.

If you are spending more than you are earning or have saved, think about ways to cut your costs. For example, a smaller home may make more sense if your children have moved out. You might also consider selling some of your property that you don’t use, such as a second car. This will boost your income and also may give you a tax break.

Finally, seniors find themselves in credit card debt because they simply do not understand financial matters. If one spouse took care of the monthly bills during the entire life of a couple and then that spouse dies, the other may not know where to turn and will hike upthe credit card bill. Don’t let this happen to you.

Learn about your options to get out of debt, such as home equity loans, and understand budgeting so that you stay out of debt in the first place.

Click here to read more about DIY Credit repair

Updated: January 31, 2014 — 5:00 am

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