The burden of excessive credit card debt is a “new neighborhood” for thousands of seniors across the US citizens low middle income are affected most, but even the upper middle class is taking on new debt.
Those who expected to spend their retirement years traveling and enjoying the fruits of their work are now faced with a new reality. These investments they have made that were supposed to pay high dividends and allow them a comfortable life stagnated.
For some, it means a step down in lifestyle instead of this luxurious retreat. For others, it means returning to the workforce, if they can find a job. For others, it means creating a form of self-employment to subsidize the social security income.
And for those who have no place to turn to cut spending or generate more revenue, it means that more and more credit card debt.
Those on a low fixed income, of course, was the hardest hit. When gas prices climbing and drove the price of all consumer goods in the stratosphere, those Social Security checks did not increase to cover the costs of daily necessities – like food and heating fuel, which have seen the most dramatic price increases.
Cost of social security of living increases are based on the consumer price index, and the index includes items such as housing, which came down in value; and Travel and Leisure, which have seen drastic reductions in response to lower consumer spending.
Now gasoline prices have eased a little, but it is no surprise that food prices have not fallen. It can cost less than last year to ship goods to grocery stores, but no passing that savings to consumers.
Older people are turning to credit cards for luxury goods. Instead, they are turning to credit cards for necessities. medical care and medicines on top of the list order, despite Medicare payments and other insurance policies. More than half of the surveyed families reported that medical expenses contributed to their credit card debt.
Is it any wonder? When a person makes $ 600 a month and their medical bills eat up a third of it, something has to give. For many, this means putting groceries on a credit card.
From 2005 to 2008, citizens of 65 and over have increased 26% credit card debt. By comparison, consumers in the 35-64 age category increased 7% debt and 18-34 Consumers increased by only 1%.
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