Debt and Seniors

Debt among seniors is believed to be a rising problem.

As the Baby Boomers age into maturity, those who study debt are watching a rise in the debt burden carried by those people over age 65.

A study by the public interest firm Demos released in July indicates a rise in credit card debt of 26 percent in that age group from the year 2005 to 2008. In 2005 seniors averaged $8,138 of credit card debt. In 2008, seniors averaged $10,235.

This rise is partly attributed to the economic downturn, which may have forced some seniors to carry more debt on their credit cards after their retirement savings took a hit, the study said. The California Attorney General’s office notes medical expenses and foreclosures as other reasons that an elderly person might be in debt.

That office gives the following advice to seniors with debt burdens:  speak a creditor and ask for more time, consider calling an agency that counsels on credit and debt, be careful with debt consolidation loans, carefully study your bankruptcy options before going that route.  Know the protections that you have from debt collectors, and understand that generally your Social Security funds are not subject to garnishment.   For more advice, go to this page.