IN THE old days, senior citizens are supposed to be enjoying their golden years. They have worked so hard and planned their retirement diligently and carefully to retire with bliss.
Not anymore! According to the AARP, the rate of personal bankruptcies filed by people age 65 and older grew by 125 percent from 1991 to 2007. The statistics are even more shocking for people in the age range of 75 to 84. Their bankruptcy rate expanded by a whopping 433.3 percent.
These figures are not only abysmal, they are truly terrifying. What has caused the shocking rise in financial woes for senior citizens? We could not exactly pinpoint just one reason, rather complex and varied causes.
Inflation has risen dramatically, but pensions and retirement incomes have remained stagnant. In fact, with the failure of some companies, some pensions have been cut or have disappeared entirely. With longer life expectancy, pensions and retirement savings aren’t just enough to sustain longer retirement years anymore.
Faced with skyrocketing costs for medical care, prescription drugs, food and utilities, many seniors often turned to credit cards to get what they must have for survival. Now they find themselves drowning in debt, struggling to meet the minimum payments and unable to afford the necessities of life.
Our office has witnessed too many seniors who can barely survive financially because their credit card debts consume most of their income, which is often limited to just social security and pension plan payments.
The sad truth is that too many of our senior citizens with debt problems are enduring continuing and unnecessary stress. They save on food, avoid necessary medical treatment, and do not save emergency cash reserves, all in an attempt to honor their values and beliefs about repaying their credit card debts. But here is the reality: paying overwhelming credit card debts, with excessive credit card interest rates and late fees and penalties, is simply not reasonable.
Debt-ridden seniors frequently are judgment proof. However, that does not stop creditor harassment. Even a senior citizen who is judgment proof can have their bank account garnished. The worry and stress that debt accumulation causes is unhealthy – especially to those in their golden years.
If you have a loved one or know of a senior citizen having difficulty keeping up with the bills, it’s best to let them get professional advice before it’s too late.
Should you need assistance, please feel free to contact our office at (323) 550-1869 or (323) 356-3803 and we will gladly help find your options and refer you to other professionals in various fields, if necessary.
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Evangeline can be reached at her marketing location at the Ground Floor of Eagle Rock Plaza (in front of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041 or at her business address at 450 N. Brand Blvd., Ste. 600, Glendale, CA 91203, phone number (323) 356-3803 or (323) 254-6787.
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The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.
(Advertising Supplement)
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