Credit Cards for Senior Citizens
Senior citizens who have credit cards often start out their retirement with good credit. But the subsequent use of their credit cards unfortunately puts many senior citizens into difficult situations as their credit card debt mounts and retirement payments cannot meet their needs.
Other People Are Reading
-
Senior Credit Card Debt
-
Senior citizens' credit card debt can mount over time, creating problems for many seniors. Unlike younger generations, who might build debt through careless spending or buying items they might not need, many seniors are using credit cards to pay for medical expenses and medicines. The prices add up and the debt begins to mount, resulting in senior bankruptcy.
Circle of Debt
-
Credit card debt can become a vicious circle that senior citizens have trouble getting out of. The circle starts with a simple late payment, which results in a late fee. The fees add up and senior citizens find that the previously manageable debts are suddenly too high -- as interest rates rise and the payments increase.
-
Plan to Get Out of Debt
-
Senior citizens need to take action early and make a plan before retirement to get out of debt. The plan should consider a budget for retirement, and payments to the credit card should be included in the budgeting to prevent late payments or fees. Go over the plan with a financial planner before implementing it to ensure it is realistic.
Tips for Getting Out and Staying Out of Debt
-
Senior citizens with credit card debts should start eliminating the debt by cutting up credit cards and stopping their use. This will allow payments into the debt while preventing payments from the debt. Also, working for a few extra years and delaying Social Security payments will help build an extra cushion at retirement to prevent the need to use credit cards for medical expenses.
-
References
- Photo Credit Jupiterimages/Brand X Pictures/Getty Images
