A study by the University of Michigan Law School showed that 7
percent of the people filing for bankruptcy between 1991 and 2007
were aged 65 and older - the fastest growing age segment to file.
Two-thirds of older Americans pointed to high credit card debt as
their reason for choosing to file bankruptcy and seniors had 50
percent higher credit card debt than younger people who were filing.
Contributing factors to this trend include the rising cost of
medical care and decreased income after retirement. Many seniors
also deal with the loss of a spouse and subsequently the loss of a
secondary, or even primary, income. Seniors also may be hesitant to
talk about their financial issues, not wanting to be seen as asking
for help.
With a growing number of seniors filing for bankruptcy, it's
apparent that many feel powerless to get out of debt. However, there
are options available that are not as drastic as bankruptcy.
Financial expert and best-selling author David Bach stresses that it
is possible for many seniors to overcome their debt, without
declaring bankruptcy.
"Bankruptcy should be a last resort," Bach says. "And that means you
need to know about your options to pay off debt before you come to
the conclusion of filing bankruptcy. It's easy to feel overwhelmed
by debt, but there are smarter ways to eliminate it."
Bach, whose latest book, Debt Free for Life: The Finish Rich Plan
for Financial Freedom, outlines a plan for getting out of debt,
points to Debt Wise, an online tool from credit reporting agency
Equifax, as one of his favorite methods to help oneself get out of
debt.
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"I like Debt Wise because it uses the same methods I've been
teaching for decades to help people pay off their debts faster and
save on interest, but it does so automatically," says Bach. "The
tool pulls the debts listed in your Equifax credit report so you can
set everything up in a matter of minutes, keep yourself on track and
monitor your progress."
For seniors, it might seem like it's too late to tackle debt and
that the only way out is to choose bankruptcy. However, by utilizing
a system to prioritize debts and structure a payment plan, seniors
can often get out of debt - credit card or otherwise -- without
turning to bankruptcy. For this fiercely independent segment of the
population, using a simple tool that can help them overcome debt can
offer a new lease on life.
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