Struggling with credit-card debt is no way to spend the retirement years, but an increasing number of seniors are doing just that. Living on fixed incomes and stretching their budgets, American seniors have joined a younger generation that's grown attached to a formula for financial ruin.
Columbia, Maryland (PRWEB) February 13, 2007 -- For many seniors saddled with an increasing amount of debt, The Golden Years have become The Plastic Years.
American seniors, once known as the most frugal of all, have become the fastest-growing group to see its debt load increase, with a staggering jump in debt, according to the most recent data available. A study from the Employee Benefit Research Institute reported that between 1992 and 2004, debt increased 76 percent to $51,791 for those 55 and older. The study included all debts, but credit card debt, especially for those 65 and older, is what has led to a crisis among older Americans.
"All indicators show that there's an overwhelming amount of debt being taken on by seniors," said Clarky Davis, spokesperson for CareOne Credit Counseling services. "At a time when the elderly should be comfortable with their finances, an increasing number are in the red and caught in a vicious cycle of debt."
That cycle is leading more and more elderly Americans to file for bankruptcy. Between 1992 and 2001, the rate of bankruptcies tripled among older Americans. Stagnant wages, rising personal and medical costs and a deregulated credit card industry proved to be a lethal combination for struggling seniors. And the epidemic may just be getting started. With baby boomers - a generation comfortable with carrying large amounts of debt - nearing retirement age, an even greater problem looms.
"It's frustrating for many seniors because they don't see a way out of debt," said Davis. "While getting a job to expand their income and pay off their debt may not be an option, there are other solutions available to meet their needs."
A path to those solutions can be found at CareOne Credit Counseling services (www.careonecredit.com). CareOne is the industry's leading debt management program brand, linking consumers together with agencies that provide customized solutions, 24-hour account access, electronic payment options, strict privacy controls, and ongoing support and counseling.
CareOne agencies offer user-friendly streamlined services to accommodate these seniors, whose numbers are also increasing in seeking credit counseling. A recent survey by the National Consumer Law Center reported that nine of 10 credit counselors have seen a substantial increase in older clients the past five years. And that's no surprise, considering that newly retired seniors between the ages of 65 and 69 carried almost $6,000 in credit card debt in 2001, up 217 percent from 1992.
Contact Information:
Clarky Davis, Spokes Person
CareOne Credit Counseling Services
8930 Stanford Blvd
Columbia, MD 21045
410-910-2750
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