A few days ago, the Newhouse News Service told the story of an 85 year old Ohio couple who called their 60 year old son to tell him they thought they were being evicted.
Their son ultimately realized that his parents were more than $80 thousand dollars in debt.
The story makes the point that older Americans are increasingly being overwhelmed by debt.
Senior debt burden began growing in the early 1990's, and according to the National Consumer Law Center, has only worsened since then.
One expert estimate shows people 55 and older now accounting for more than 22 percent of those filing for bankruptcy - up from less than 10% as recently as 1994.
Why?
Well, the couple who were featured in the article answered that question this way: "Because we didn't have the money to pay the bills."
A deeper analysis might show some of the following reasons why some seniors don't have the money to pay the bills:
- the exploding cost of health care - including prescription drugs - that either drains savings or is diverted to credit cards;
- necessities such as food bought on credit;
- unrealistic expectations about how much retirement income Social Security would provide
- attempts to help adult children struggling financially themselves;
- the death of a spouse.
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A reverse mortgage allows qualifying seniors over 62 to remain in their home with NEVER a mortgage payment
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