Senior Citizens Battle Credit Card Debt

The Sloan Center on Aging and Work at Boston College concluded that 30% of unemployed individuals over age 55 have less retirement savings than credit card debt. In addition, the average credit card debt for individuals over 65 is currently $10,235, and this age group outpaces any other age group in new credit card acquisitions. Some of these elderly individuals aren’t afraid to ask for help and designate an agent under a power of attorney. However, most are too embarrassed to ask for help and remain too impoverished to pay off the debt.

Bankruptcy might be a good option in some situations, but the elderly segment of the population tends to feel a moral obligation to repay their debts. Only 9% of all bankruptcy petitioners are senior citizens. Another option is to seek credit counseling. For example, the Institute for Financial Literacy has developed a new course entitled “Senior Financial Safety,” which addresses post-retirement planning, consumer fraud, and money management. Approximately 12,000 seniors around the world are expected to take this course this year.

See Sherisse Pham, Retirements Swallowed by Debt, N.Y. Times, Jan. 26, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.