Sadly, bankruptcy among seniors is on the rise. This is one more worry to be added to a long list for family members who are concerned about their aging parents.
Not used to credit cards in their youth, many seniors are racking up credit card debt at an alarming rate; finding themselves suddenly overwhelmed by payments they can’t make. What is even more alarming is the increased use of payday loans among seniors.
On top of watching their overall health – making sure they are taking care of themselves and eating properly – we also need to keep an eye out for signs of debt problems. These signs can include:
- unopened mail or an unwillingness to answer the phone due to collection calls;
- excessive spending or gifting beyond what you think they can reasonably afford;
- a wariness to talk openly about their financial position and whether or not they are managing to keep up with the bills; and
- excessive cutbacks to avoid spending money on necessary items despite having what you thought was a stable source of pension income.
Our infographic below highlights just how many seniors are filing bankruptcy and how you should talk to your parents about debt.