Seniors are swimming in debt, study says
"Loyalty doesn't pay when it comes to credit cards," says Matt Schulz, senior industry analyst for CreditCards.com. Credit: frankieleon via Flickr
It’s not just college grads who are up to their eyeballs in debt. A new report from the National Council on Aging shows that in households headed by someone 60-plus, the median total debt was $40,900 in 2013, more than double what it was in 2001.
Many seniors are drowning in medical and credit card debt. They put off home and vehicle repairs, skip doctor’s visits, and miss rent and mortgage payments.
“People are making debilitating trade-offs and don’t realize there is help,” says Maggie Flowers, NCOA’s associate director of economic security in Arlington, Virginia.
- Tap resources. The NCOA offers EconomicCheckUp, a free online service that helps seniors reduce debt, find work and cut spending. BenefitsCheckUp screens people for programs that can help them pay for health care, food and household expenses. Contact your local Area Agency on Aging for other options.
- Create a debt management plan. Evaluate whether refinancing your mortgage is a smart option. Pay off the highest cost credit card debt first.
- Get tough. Curb “loans” to the kids. “Don’t overspend on the grandchildren. Find balance,” says Rochelle Odesser, vice president with Madison Planning Group in White Plains.
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Get ready for sun and fun with NewsdayTV's summer FunBook special! From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook.
