Getting through a Bankruptcy as a Senior Guide

Senior citizens around the country are beginning to pursue what is becoming a nationwide trend through the filing of bankruptcy. According to the findings of numerous studies and analysis, the filing of bankruptcy by seniors and retirees is reaching an all time high.Find more info read this

The explanation for this is that right now the economy is not particularly strong, and seniors are the usual individuals who live on a fixed income. The sum of that fixed income does not keep pace with the rate of inflation as inflation happens year after year. Health insurance premiums have passed through the roof to compound this issue, and some pension schemes have started to place limits on retired workers’ health care benefits, and some corporations have sought to cut the benefit entirely.

Senior Americans are being increasingly consumed by debt and financial commitments, more now than ever. As a consequence of this, one of the sad findings is that after being part of the work force for 30, 40 years or more, now is the time when seniors should be able to sit back and enjoy life, but for many, that’s not the reality they face. One estimate suggests that about 22 percent of those filing for bankruptcy are accounted for by people aged 55 and over.

There are many reasons why this dilemma is faced by seniors, and many of these things are not relegated to seniors. There is the skyrocketing cost of health insurance that often requires prescription medications, and sadly, as individuals advance in years, these are frequently used. Credit cards are used for other needs, such as food and clothes. A willingness to support their children who may be financially struggling also plays a part. The unreasonable expectations of what compensation their pensions would generate, the benefits (or lack thereof) provided in their pensions, and the degree to which Social Security plays a minor role in their income are also a major factor.

One way many seniors have sought temporary relief from this issue is to accept the credit card deals that seem to come in the mail every day by the truckload. They get the credit cards out of desperation, bill them to the hilt, and then the process is repeated until it becomes a house of cards, which falls loudly, while in the same situation next month. With the high interest rates paid by many of these credit cards, they are as vulnerable as anyone else, as they see their savings erode even more rapidly.