Is Credit Card Debt Stopping You From Retiring?

There has probably never been a time in your life when you did not see senior citizens wearing name tags at work.  Before there were elderly Walmart greeters, there were elderly diner waitresses.  When you were a child, your reaction was, “They’re so old!”  When you were a teenager, you thought, “This is awesome!  I’m at a diner without my parents.  My friends and I are the sole decision makers about how big a tip this old geezer gets for serving our meal.”  When you entered the workforce, your reaction changed again.  If you are a jerk, you looked down on the elderly members of the workforce for holding such humble positions of employment and vowed never to be a chump like them; you probably would not say the same thing about personal injury lawyers or economics professors who refused to retire.  If you are not, you simply say, “Good morning, Bob,” or, “Thanks for the coffee, Cindy,” and go on with your day.  When you get old enough to think about retirement, you think, “At least they have a social outlet.”  For every senior who remains in the workforce for fun, though, there are many who are there because of financial constraints.  If you are over 60 and in debt, you are not alone.  It may be time to rethink your estate plan with the help of a Tampa estate planning lawyer.

Seniors and Credit Card Debt

Credit card debt is a problem for everyone, but it is uniquely painful for seniors.  The average household’s credit card balance has doubled since 1992, but the number has quadrupled for households headed by someone who is at least 65 years old.  The bigger balances are not the only problem.  Credit card debt is even more worrisome when you are already retired and on a fixed income or if you are counting the pay periods until your retirement in months instead of years.

The reasons for the recent increase in credit card debt among seniors are easy to understand.  Everything is expensive, especially housing, so things that people used to pay for in cash now end up as credit card charges.  Likewise, older people often help their adult children with expenses, even when it means going into debt themselves.

If you are struggling with credit card debt after retirement or shortly before, you have several options.  You are never too old to file for bankruptcy protection; chapter 7 is your best option if you have already retired.  You can also pay off your credit card debt by borrowing a reverse mortgage or debt consolidation loan.  Another option is to settle your debt for less than you currently owe by negotiating directly with the credit card company.

Contact David Toback About Credit Card Debt After Retirement

A Central Florida estate planning lawyer can help you if credit card debt is causing you to postpone your retirement.  Contact David Toback in Tampa, Florida to set up a consultation.

Source:

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