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Seniors In Debt

July 13, 2009 by DebtGeniusNo Comments Tweet this post

Seniors In Debt

When you consider that retirement income is usually less than a working income (and often fixed), increased inflation affects purchasing even basic commodities… and it can be staggering. Consider the increase cost of oil. Heating oil is bad enough. But think about the cost of vehicle operation besides just your car. Everything must be transported and the increased cost of transporting even basic commodities has to be made up from someplace. The only place it can come from is the consumer’s pocket. Everything you purchase has an increased cost. That can of peas or the new sofa costs far more than it use to along with the gasoline to go purchase it.

But there is more. The younger generation grew up with wide-open credit but the senior did not. Many times there is a cultural difference between someone who grew up with credit cards and someone who did not. Many seniors are bringing credit debt into their retirement with retirement dollars straining to meet the budget.. Add to that increased late fees, over the limit fees, even back charge fees and you have a potentially catastrophic arena.

But there is also a longer life, increased health costs, deteriorating health and a credit card industry willing to open the doors of credit to nearly anyone that’s still breathing. When you are desperate, it is not an implausible thought that a credit card might look like the solution even for basic purchases. Unfortunately, all a credit card does is increase the inevitable. Like everyone else, seniors are paying for today with tomorrow’s dollars… dollars that are definitely shrinking form a fixed income.

So what can be done? The obvious answer is to plan early… the earlier the better. But what if early planning did not occur. Then tragically the only solutions left are the exact same solutions for every other consumer- increase income or decrease expenses.

Ahhh but therein lies the catch. How can you increase income when it is fixed? Often times this can be accomplished through imagination and creativity. Perhaps the senior can develop consulting opportunities or an online business. Perhaps something can be sold. Hundreds of additional ideas can be gleaned form online resources, written publications, and senior advisors. The point is, plans must be developed and enacted.

If increasing income is not an option then the only recourse is decrease expenses. Call creditors and request a decrease in interest rate. This may sound absurd but it is done every day. There are also scores of magazines offering ways to stretch your dollar. Similarly your favorite search engine will produce more frugal sites than you can ever read. Each of these sites informs the reader of ideas to save money and to accomplish exactly what you are already doing but for less.

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