When your Funds for Retirement are Barrely Enough to Cover

When your Funds for Retirement are Barrely Enough to Cover your Credit Card Debt

My neighbor is a robust and upbeat 85-year-old man who lives by himself. A good part of the secret to his upbeat attitude he never failed to tell me was that he felt that everything in his life was properly taken care of in terms of funds for retirement set aside. He had a small inheritance, Social Security, investments and an IRA. What more did he need, he felt. The real truth came out somewhat when a few months ago, he slipped and broke his ankle. His son had to come in from across the country to try to take care of him. The son found that his father had something like seven credit cards. To try to see what kind of financial situation is father was in, the son made a few phone calls to the credit card companies and found something quite shocking - his father owed about $20,000 on all his cards put together.

The son called the father on the carpet and told him he just had to learn to be more responsible. Since the father wasn't that way inclined, the son called all the banks to have them mail all their bills to him. He was going to take charge. Perhaps it would be a good idea for every adult child of an elderly parent to have a talk about how the finances are handled. Look closely at the kind of problems that the elderly get themselves into, and you'll soon agree that this makes a lot of sense. There are so many studies out there now to prove that the elderly are using their credit cards for everything - utility bills, gas for the car, day-to-day living expenses. At some point, there are so many who realize that they are in over their heads. But they are too proud to ask for help. They begin instead, to dip into their funds for retirement rather than ask for help. And that begins to vanish soon.

Just look at the figures - among people over the age of 55, one out of three has more credit card debt than funds for retirement set aside. About an equal number has as much set aside as their credit card bills total up to. A good enough number of Americans are all set at this point to start their retired life with no job and lots of money owed. No wonder people are looking for jobs after they turn 60 or 70. The average credit card debt for a person over 60 at this point is about $10,000. This is a figure that they just cannot handle.

It can happen really quickly and really easily. People start off with what seems like a modest credit card debt; when they get maxed out on one card, they just pick up another at the supermarket or somewhere else. There are medical bills, there are grandchildren to buy gifts for; before they know it, they are in over their heads. For some, credit counseling may be the answer when they can no longer afford to make the minimum payments. For others, bankruptcy may be a controlled way to deal with an impossible situation.

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