Retirees and Credit Card Debt

Much of the content about credit card debt focuses on working age people who feel the pressure to engage in consumerism and who charge purchases on their credit cards in the hope, no matter how remote, that their income will increase to the point where they can pay down the debt more quickly than they accumulated it.  For retirees, the picture is different.  Being retired is synonymous with being on a fixed income, or at least one that is unlikely to experience a large increase unless you receive an inheritance you were not expecting or one from a relative who was wealthier than you realized.  Retired people struggle with credit card debt, too, even if they are not as lucrative an audience for personal finance-related content as Millennials and Generation Z, who presumably still have many years ahead of them in the workforce.  If you are retired and struggling with credit card debt, or if you are old enough to draw Social Security but credit card debt is one of the main reasons that you have not retired, contact a Philadelphia debt relief lawyer.

Why Are Seniors in Debt?

The ways that seniors take on credit card debt are different from those that cause credit card balances to climb upward for working age folks, but the underlying causes are the same.  When you are young, you can justify a splurge, because there is plenty of employment income to be earned.  You might call it an investment in your career when you charge a new pair of shoes on your credit card and wear them at work.  You might even justify it by saying that it will help you build your credit history.

Seniors’ credit card purchases are more calculated.  Retirees tend to be good at budgeting.  They might charge a credit card purchase because it will yield reward points and then pay it off almost immediately.  At least, that is what seniors used to do before the financial long COVID hit.  These days, the emergency expenses come so quickly from so many different directions that retirees, even the ones who are disciplined about spending and who have retirement savings from employer-sponsored savings plans, are not always able to pay their balances in full each month.  Their young adult children may need to use their parents’ credit cards once their own are maxed out, even though this was not the plan when the parents retired.

What Can Retirees Do to Make Their Credit Card Debts Go Away?

If you have been carrying a credit card balance for a long time, the credit card company might be willing to settle with you for less than the full amount that you currently owe. Another option is to pay off your credit card debt in a lump sum, by taking out a debt consolidation loan or reverse mortgage.

Contact CONSUMERLAWPA.com About Debts That Darken Your Golden Years

A Philadelphia consumer law attorney can help you if you are struggling with debts, even though you have already retired.  Contact CONSUMERLAWPA.com to set up a free, confidential consultation.

Source:

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