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Don't Let Credit Card Debt Ruin Retirement
MMI Offers Tips for Older Americans Who Are Struggling With Credit Card Debt
Money Management International
August 18, 2004
Many elderly Americans are feeling a financial crunch. Reduced retirement savings due to the stock market, rising medical costs and fixed incomes often leave seniors no choice but to rely on credit cards to survive with day-to-day expenses.
In fact, a recent study by Money Management International (MMI) and Quest Business Agency found that people 55 years or older use their credit cards more often, and are more careless in their credit card use, than those people aged 18 to 34.
Financial problems of seniors have become serious. It is estimated by the American Bankruptcy Institute that seniors who file for bankruptcy carry nearly twice the amount of credit card debt than filers in their forties.
If you are a senior experiencing financial trouble, do not think that all hope is lost. MMI offers the following suggestions to help you get out of debt and stay out of debt quickly:
Prioritize your debts. Some debts are more important to pay promptly
than others. For example, you must continue to make mortgage or rent
payments so that you do not lose your home. You must also pay utilities
and provide food. Also, be careful not to let your insurance coverage
expire -- both medical and personal.
Make informed decisions. Do not feel "bullied" by collectors into making
payments you cannot afford or paying debts that may not be yours. Visit
http://www.ftc.gov to read about your rights when dealing with
collectors.
Work with your creditors. Many creditors, particularly doctors and
hospitals, may be willing to reduce your required monthly payments. If
you are able to negotiate a revised payment schedule, get all of the
details in writing to avoid future problems.
Consider a reverse mortgage. According to the AARP, a reverse mortgage
can turn the value of your home into cash without having to move or to
repay the loan each month. For more information, visit
http://www.aarp.org/revmort/ .
Consider mail order. Many seniors are overwhelmed by the high cost of
prescription drugs, and credit cards seem to be a quick resort. Contact
your insurance company and consider purchasing them through the mail,
which is most often less expensive.
Just say no. Be careful to avoid letting your children or relatives use
your credit cards or by co-signing for loans. This is a quick way to get
into a world of financial trouble.
Research opportunities for income. If you have a whole-life insurance
policy, you may be able to cash out. You might also consider taking on a
part-time job or selling unneeded assets.
"Don't be afraid to ask for help," said Kelly Rote, communications manager for MMI. "Research any and all assistance offered by local city and county government offices, or seek help from your local United Way. If you would like help in repaying debts and establishing a realistic spending plan, visit our Web site at
http://www.moneymanagement.org ."
About Money Management International
Money Management International (MMI) is a non-profit, full-service credit counseling agency, providing confidential financial guidance, counseling and debt management assistance to consumers for over 46 years. MMI helps consumers trim their expenses, develop a spending plan and repay debts. Counseling is available by appointment in branch offices and 24/7 by telephone and Internet. Services are available in English or Spanish. To learn more, call 800-762-2271 or visit
http://www.moneymanagement.org .
Contact:
Emily Skaggs or
Jordan Brient
Pierpont Communications
713-627-2223, ext 151
eskaggs@piercom.com or
jbrient@piercom.com
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