When An Older Person Has Debt
Older people are feeling the stress of an economic recession just as badly as those who are younger
. Many older Americans might not be able to work due to physical or mental conditions or fragility. However, these people still live in homes with mortgages, and much like younger people, some older people may have maxed out credit cards too. The situation can seem hopeless - with no employment and little help from retirement funds, social security checks, and Medicare, it may seem like there is nowhere to turn.
However, there are still a few options for older people with debt to consider. One option is to seek a reduction in interest from their credit cards. Decreasing the interest rate on a credit card from thirty percent to ten can save the average person an extra two hundred dollars a month. Many times, lowering the rate can be a lot easier than it seems. The cardholder always has the option to call the credit card issuer and request that their interest be lowered. If a cardholder has a decent payment history, and there are extenuating financial circumstances, like there are in many cases of older people with debt, then there is a good chance that the creditor will lower the rate. Before making the call, it's a good idea to plan out what you are going to say. When bargaining for anything, it's always better to request a lower payment plan than you expect to receive. And if something gets worked out, obtain the name and ID number of the financial representative who offered you the modified interest as proof of the conversation.
Additionally there are plenty of professional intermediaries that can help out older people with their personal finances. There are plenty of nonprofit credit counseling services out there that will be willing to work with you, and work on your behalf with your creditors to get you a lower interest rate.
If the situation is serious, a lawyer should be introduced into the situation; one with experience in bankruptcy would be preferable. An experienced lawyer will be able to evaluate all options with a clear head. Remember: bankruptcy has the capacity to absolve you of much of your debt, but it also has a detrimental effect on your credit score for ten years.
Finally, never just walk away from credit card debt. When you ignore a situation where you owe debt, it only means collections actions, lawsuits, summons, or maybe even eventually having the debt turn into taxable income. Especially for older people in today's economy, it is essential to protect and care for yourself and your property. When collection agents contact you, give them a chance - explain your situation to them and ask if a repayment plan can be worked out. Oftentimes they aren't as bad as they are made out to be, and can often be helpful when it comes to financial advice or helping you hash out a re-payment plan.
by: Mallory Megan
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