How Much Do The Retirees Owe On Credit Cards?

Our parents as well as anyone of us can sooner or later retire, after which the income will depend on the retirement plan one had chosen. Once there comes time when every American citizen is supposed to enjoy life and see the country and the world. Does every senior have enough money to lead a carefree life full of pleasures? Many use credit cards…
American seniors can get credit cards for different purposes – to enjoy rewards or conveniences a credit card provides, to reduce an old debt, etc. Surveys show that a great number of American retirees do not know the basic rules of wise credit card usage. However, other surveys testify to the fact that more than 40% of seniors in the US help their working children in paying off their mortgage, rent, insurance payments and other debts. Though the latter can easily cope with their personal expenses, they can still accumulate a great deal of debt, participating in their children's debt reduction. Sounds alarming, isn't it?
What we actually have in this country is millions of retirees facing credit card debt and bad credit, when they are supposed to have the greatest rest in their life and spend on things they couldn't have before retirement. As a result, many elderly debtors file for bankruptcy. Very often elderly people conceal their financial difficulties from their children, turning to bankruptcy attorney instead.
What are the main reasons of debt after retirement?
* Credit is available. It is easy to apply for a credit card and you will be approved fast! 15-20 years ago it was not as easy to get a credit card as now. However, some banks nowadays put some limitations on the age of the applicant: people older than, say, 75, are not eligible for any credit.
* Seniors are lacking credit education. Statistics show that the number of elderly people looking for pre-bankruptcy counseling has been increasing: in 2005 there were 10% of such Americans, in 2006 the number grew up to 14%. Administrative Office of the US Court say that there are more retirees filing for bankruptcy than younger consumers.
* Elderly card holders miss payments and pay penalty fees and higher interest rates more often than young people.
* Excessive advertising confuse the retirees and it is difficult for them to choose the right card.
* And finally, elderly customers often do not understand how credit cards work! Paying minimum payments for years, they can't understand why the amount they owe to the bank is only growing.
Speak to your parents or grandparents, learn how many cards they have and how they use them. Help your seniors avoid debt and bankruptcy.

By: Mary Bailey

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Mary S. Bailey, as an author of articles and online personal finance consultant, is known to the visitors of credit cardCreditOrganizer.com for her useful tips on how to improve one's credit score, how to manage one's credit cards and choose the most beneficial options.

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