Helping Older Americans with Debt

You would think that younger Americans would have more debt than older ones, but the truth is that the elderly have been racking up debt on credit cards, according to an article on the ABCNews website.

The article pinpoints that older Americans have higher debt because of rising medical costs. These individuals aren’t spending frivolously but out of necessity. If their retirement doesn’t cover their household bills, medications, etc. it’s easy to just put it on the credit card. Then if they can’t pay off the credit card, they are paying as much as 20% interest and late fees if the minimum payment isn’t paid. This just puts them further into debt the older they get.

Getting Financial Help

If you are an older American - what are you to do? You need to take medication and have a roof over your head. Here are some suggestions if you are elderly and struggling:

• Contact social services to ask about any financial assistance for heating and cooling. Some states have subsidies for the elderly.
• Contact pharmaceutical companies to ask if there are any discounts or ways to get their medications at a reduced cost.
• Ask your doctor about samples. Many doctors get these free samples from pharmaceutical companies and don’t have a problem giving them away to people in need.
• If you are using your credit card for groceries, contact churches in your area to ask about food banks. You can receive a bag or two of food that will get you through the week.

What to Do About Your Debt

To start working on your credit card debt, call the credit card companies to explain your situation. You may be able to reduce your interest rate and work out a payment plan that fits your financial situation.

Take One Thing at a Time

Don’t worry about the debt, pay as much as you can and utilize resources. Over time, you will get your debt down and eventually eliminated.

(Photo Credit: http://www.flickr.com/photos/of_hueyd/3303200947/)

August 17th, 2009 by Marcelina Hardy | Posted in Debt Management | (0)