As we age, especially in today's economic climate, the years that follow retirement are not as easy as they may once have been. Besides an eventual loss of independence, many seniors suffer from a loss of income, often the result of high credit card debt. Recovering from this debt without assistance is usually impossible. Before retirement, most people utilize credit cards to purchases items they want, repaying the creditor with high interest. After retirement, however, seniors are faced with a loss of income, which turns their credit card use from an option to a necessity.
These needed purchases can include health insurance premiums, medical bills and medications, and groceries. In most instances, high credit card debt is very difficult to recover from. At any age, it is very easy to lose track of your financial situation and get into serious debt, especially when unexpected challenges arise. For seniors, medical expenses and an unexpected loss of assets through IRA and 401k accounts can greatly increase the need to rely on credit. Pensions and depleted savings eventually become insufficient to repay new and old debts.
However, there is hope. Most creditors are more than willing to work with debtors over the age of 65. Creditors tend to be more sympathetic during times of hardship, and they may also have an underlying reason to help you settle your debt. Death is a topic we tend to avoid in life, but it deeply affects our families and, believe it or not, our credit. If you have prepared a Will, outstanding debt can consume a considerable portion of the assets you were expecting to leave your loved ones. Negotiating a settlement with your creditors will help you to pay down your debt, as well as save the assets in your Will.
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