In a recent study by the Employee Benefit Research Institute, researchers have determined that older Americans (those who are older than 55 years of age) are increasingly more in debt than in prior years. The study states that in 1992, 53.8 percent of these families carried debt from month to month where in 2016 that number reached 68 percent. And it continues to rise.
Student loan debt among the Elderly is also increasing. These senior citizens have been helping children and grandchildren go to college by co-signing student loans. The number of people in the age range with student loans has quadrupled in the past 10 years.
When these elderly couples are living on a fixed income, they often are forced to resort to using credit cards in order to buy their food, medications and the like, causing them to increase their debt exponentially from year to year.
What is the answer? It’s hard to say. The best answer is to not get there in the first place. Do not cosign those student loans. Do not pay for food and medication on credit cards. If you have already done so or have not other choice, then bankruptcy may be your best option. Depending on your individual circumstances, you may be able to file a Chapter 7 or Chapter 13 bankruptcy to stop the collection of these debts, meaning that the phone calls, letters, lawsuits, etc. will come to an end. The bankruptcy doesn’t typically take care of the student loans, but can help you with the credit cards, medical bills and other unsecured debts.
If you have any questions about these issues, please give me a call. I’ll be happy to sit down with you for a free, no obligation consultation to evaluate your situation and inform you of your different options on bankruptcy and rebuilding your credit. Please contact me at 281-847-4345 or firstname.lastname@example.org. I look forward to hearing from you soon.