Elderly Credit Card Debt
No one really wants to see parents rely on their children financially in old age.
Yet that is an unfortunately rising prospect for too many seniors, as more and more senior citizens find themselves in heavier and heavier credit card debt.
The Golden Years are no longer free of financial worry, as debt eats away at fortunes made over a lifetime.
The trend has been noted by the American Association of Retired Persons, which has dedicated articles on its website to.
The trend also has been demonstrated by studies and statistics - the numbers are there to support the stories.
A study by the public interest firm Demos released in July 2009 indicates a rise in credit card debt of 26 percent among seniors from the year 2005 to 2008.
In 2005 seniors averaged $8,138 of credit card debt.
In 2008, seniors averaged $10,235.
A second study, conducted by the Employee Benefit Research Institute also outlines the increasing debt levels among elderly American citizens.
The statistics, highlighting differences in the level of senior debt from 1992 to 2007, are rather starting: 1) 63 percent of seniors now report having debt, up 10 percentage points since 1992; (2) of those, the average dollar figure on the debt shot up 118.
6 percent, from an inflation-adjusted $32,191 in 1992 to $70,370 in 2007; 3) the median debt level among seniors increased from $15,923 to $43,000, a 170-percent increase.
The levels of debt were particularly conspicuous among the ages 55 to 64, with less debt among those older.
The reasons given for the rise in senior debt change with the source.
The Demos study accounted for this trend by noting the recent economic downturn.
Demos believes that the bad economy took a hard swipe at the retirement savings of seniors, forcing unfortunate seniors to compensate by taking on debt.
Another theory is put forth by the California Bar Foundation, which cited increasing medical expenses and the recent wave of foreclosures as reasons for the rise in senior debt.
The EBRI study found an increase in housing debt among the elderly from $65,898 in 1992 to $79,000 in 2007.
The rise in elderly housing debt is another concern, because the house is the major asset for seniors as they roll into retirement.
Having to re-mortgage a home makes it harder for someone to retire successfully.
To stay out of debt, seniors should follow some very typical smart money guidelines, such as use cash as much as possible, budget your money, etc.
Investing and saving wisely are of course helpful in avoiding this predicament.
However you slice it, debt is a rising issues among America's elderly citizens that needs to be addressed.
Otherwise, it could leave the elderly out in the financial cold, and force their children into painful choices on how to help their parents and not hurt themselves.
Yet that is an unfortunately rising prospect for too many seniors, as more and more senior citizens find themselves in heavier and heavier credit card debt.
The Golden Years are no longer free of financial worry, as debt eats away at fortunes made over a lifetime.
The trend has been noted by the American Association of Retired Persons, which has dedicated articles on its website to.
The trend also has been demonstrated by studies and statistics - the numbers are there to support the stories.
A study by the public interest firm Demos released in July 2009 indicates a rise in credit card debt of 26 percent among seniors from the year 2005 to 2008.
In 2005 seniors averaged $8,138 of credit card debt.
In 2008, seniors averaged $10,235.
A second study, conducted by the Employee Benefit Research Institute also outlines the increasing debt levels among elderly American citizens.
The statistics, highlighting differences in the level of senior debt from 1992 to 2007, are rather starting: 1) 63 percent of seniors now report having debt, up 10 percentage points since 1992; (2) of those, the average dollar figure on the debt shot up 118.
6 percent, from an inflation-adjusted $32,191 in 1992 to $70,370 in 2007; 3) the median debt level among seniors increased from $15,923 to $43,000, a 170-percent increase.
The levels of debt were particularly conspicuous among the ages 55 to 64, with less debt among those older.
The reasons given for the rise in senior debt change with the source.
The Demos study accounted for this trend by noting the recent economic downturn.
Demos believes that the bad economy took a hard swipe at the retirement savings of seniors, forcing unfortunate seniors to compensate by taking on debt.
Another theory is put forth by the California Bar Foundation, which cited increasing medical expenses and the recent wave of foreclosures as reasons for the rise in senior debt.
The EBRI study found an increase in housing debt among the elderly from $65,898 in 1992 to $79,000 in 2007.
The rise in elderly housing debt is another concern, because the house is the major asset for seniors as they roll into retirement.
Having to re-mortgage a home makes it harder for someone to retire successfully.
To stay out of debt, seniors should follow some very typical smart money guidelines, such as use cash as much as possible, budget your money, etc.
Investing and saving wisely are of course helpful in avoiding this predicament.
However you slice it, debt is a rising issues among America's elderly citizens that needs to be addressed.
Otherwise, it could leave the elderly out in the financial cold, and force their children into painful choices on how to help their parents and not hurt themselves.
