Debt and Managing Financial Commitments for the Elderly
Filed Under Finance |
We are in a consumer driven world. There are so many things all around us that make our lives easier and, in a way, influence us to think that we must have them.
There are always things that we want which we simply cannot afford. As banks and credit card companies mushroom out of control, we are barraged with opportunities to accept personal loans from these financial institutions just so we can buy more merchandise we want but do not need.
The best part is that you do not even have go to them asking for the credit that you want.
They will be at your beck and call offering credit cards, store credit cards (from those stores you wanted to purchase from anyway), merchandise cards (you’re given hundreds of dollars in credit to purchase from the company’s specific catalog), and leasing arrangements that allow you to pay over time.
The obvious problem with buying on credit is needing to pay it off. Using an analogy, it is easier to step into quicksand than it is to get out. There isn’t always a branch lying around attached to a willing helper.
Overextending Your Ability to Repay
Credit may be no problem if your current job earns enough money to repay your debts completely each month. It simply becomes part of your overall expenses. What happens, though, when your debt overextends your pay check?
Unfortunately, retired senior citizens are more susceptible to this pitfall. In prior years, they worked and earned a certain amount of money, but upon retirement are saddled with little more than Social Security – definitely a blow to the pocket book.
Their income is not as flexible as it once was. There are solutions, however, from which seniors can benefit. Some are even geared specifically toward them.
Financial Assistance for Seniors
As a senior citizen, you can request the help of a professional. Financial advisors are available to help tackle your problems. Asking for the aid of one such professional can save you a great deal of anxiety, credit ruin and, more importantly, stress.
Your financial advisor can act as a mediator between you and creditors to develop “payoff amounts” that won’t leave you destitute - and usually at a fraction of your current payments. If you feel that you’re drowning financially, you shouldn’t wait until the water is over your head. Contact a financial advisor now for assistance.
Preparing for the Meeting
Before meeting with an advisor, there are steps you should take to be best prepared for the discussion. Grab a notebook and pen to list all your creditors.
List them in order of importance, starting with your mortgage (or rent or community fees, etc.) and ending with small payments like store credit cards. List their amounts as well. If you owe $50,000 on your home then list $50,000 and your current monthly payment. For example:
ABC Mortgage Company $50,000 (debt),
