Credit Card Debt After Retirement

The list of outdated personal finance axioms keeps growing.  For example, by now everyone knows that going without your morning coffee shop run will not make much of a dent in your debts, and when was the last time you saw someone who could afford to pay their credit card down to zero every month?  Maybe it’s time to retire the line about how everything gets less expensive after retirement, too.  You might not have to pay to park in the garage at your workplace anymore, but the consistently high price of groceries hurts twice as much when you are on a fixed income.  Retirees are just as likely as anyone else to carry a balance on their credit cards from one month to the next, and unlike young people, they don’t have a theoretically limitless number of job promotions and end of year bonuses to look forward to, nor do they have the physical strength to run on four hours of sleep and fill their free time with gig work.  The good news is that, just as credit card debt does not have an age limit, neither does debt relief.  If you are a senior struggling with credit card debt, contact a Miami debt lawyer.

Why Do Florida Seniors Have So Much Credit Card Debt?

With age comes wisdom, at least in theory.  Young people who are newly eligible for credit cards are the most likely to use them on impulse purchases and big-ticket items that, even after months or years of anticipation, are still unaffordable.  Retirees are more likely to use their credit cards only if it will get them reward points, and then to pay off the balance each month.  At least they were, until recently.  Across all age groups, the average person’s credit card debt has doubled since 1992.  For people above age 65, the amount has quadrupled.

The main cause for this change is that financial long COVID affects seniors as much as it affects everyone else.  People above the age of 60, whether they are retired or still in the workforce, are using their credit cards for emergency expenses, some of which are for the benefit of younger family members who are also financially feeling the pinch.

Your Options for Debt Relief in Your Golden Years

The remedies available to retirees who are struggling with credit card debt are the same as those available to younger people.  For example, you can pay off the credit card debt all at once by taking out a debt consolidation loan or, if you are a homeowner, a reverse mortgage.  Likewise, there is no age limit on filing for bankruptcy protection.  If you are retired, your best option for a bankruptcy filing is chapter 7, because chapter 13 is best suited to people who have employment income.

Work With a Debt Lawyer About Credit Card Debt After Retirement

A South Florida debt lawyer can help you if you are retired and your credit card balance keeps increasing.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Source:

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