Debt and the Elderly
I have seen a number of elderly individuals lately who are attempting to make payments on large credit card debt from very meager cash flow, usually just Social Security. These clients want desperately to pay their debts, when in my professional opinion, it is neither possible to pay them off, nor wise to make the sacrifices to do so.
I fear that too many of our elderly are enduring continuing stress and scrimping on food, medical treatment, and emergency cash reserves in an attempt to honor their values about repaying their debts. In the case of credit cards and credit card interest rates, paying off this debt on retirement income is simply not feasible.
Debt ridden elders frequently are judgment proof: everything they have is protected by an exemption such that even a creditor with a judgment can't take anything from them. Nonetheless, the worry and stress that debt accumulation causes is unhealthy.
I urge family and other care givers and professionals supporting the elderly to be alert for evidence of unmanageable consumer debt,* another threat and encourage the elderly to get legal advice on whether bankruptcy is appropriate for them. Elders are perhaps the one group who benefited by the recent changes in bankruptcy law.
Cathy Moran
Links to more on the elderly and their money
Social security and debt collection
When insurance is essential
At Issue interview with Cathy Moran on debt and elderly
