How is debt leading to bankruptcies for older Americans?

On Behalf of | Jun 25, 2022 | Bankruptcy

Many people assume that by the time they are in their senior years they will no longer have financial issues. By that time, they may think they will have built up a nice savings and have retirement plans in place.

Unfortunately, this is not the reality for many seniors, especially when the economy is struggling. You may find yourself having a hard time and facing a potential bankruptcy at any age. The New York Times explains the scenario is becoming more common for seniors who have found themselves in irreversible debt. There are several factors that could land you in this situation.

Medical expenses

Even with insurance, medical costs can easily become overwhelming. As you age, you probably will require more medical care to stay healthy and treat any age-related issues you may have developed. Trying to stay on top of these expenses can be difficult, especially as costs continue to rise.

Housing costs

Also on the rise are housing costs. With it becoming more difficult to find affordable places to live, you may find yourself forced to pay outrageous rents or mortgage payments that you really cannot afford. This could lead to you having to rely more on credit cards to get by, which only adds to your debt problems.

Retirement issues

You may find yourself having to retire earlier than you thought due to business downsizing or reconfiguration. Cutbacks at your place of employment could mean you lose valuable years still working and that extra time to put away for retirement.

Economic issues can lead to situations that make it hard for seniors to enjoy their retirement years comfortably. Often, the only answer to avoid further problems is to file for bankruptcy.

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