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An increasing number of seniors piling on credit card debts

Wednesday, December 01, 2010

There are 2 common trends being seen for the seniors of this nation. While half belongs to those who are raking up debts very quickly, others deem it fit to declare bankruptcy in increasing numbers. Various surveys have shown that a large number of retirees are really not worried about paying off their outstanding balances in their lifetime. A large number of seniors had outstanding debts at the time of retiring from their jobs. Interestingly 96% of the retirees didn`t delay their retirement irrespective of the outstanding debt. This credit card debt continues to add up even after retiring from their jobs. While some seniors use credit card for leisure expenses, a significant number of them use it for expenses such as paying the doctor and purchasing medicines.

More than 3/4ths of the retirees had stated that the credit card debt is largely for medical and funeral expenses. This is very high compared to less than 2/5ths of the retirees that use the card for travel, vacation, entertainment and clothing. 30% of the retirees surveyed were still paying off mortgages while 1/5th of them still had outstanding car loans. Very few people were actually thinking about investments, IRA or paying down the debt. The rest of them are too reluctant to talk about their financial issues. For those who plan to take their debts to the grave, there are only moral implications. Creditors cannot claim their pensions, IRA or 401k savings which usually form the retirement income.