Senior citizens have a lot of worries about getting older such as their health and potentially the loss of loved ones. Elderly people also often struggle to manage their finances. As many as 10 percent of older Americans need help with managing their money, a study from the the National Center for Health Statistics found.
There are many common problems with money management that senior citizens face. Below we outline the top two typical issues people aged 60 and older face in handling their finances. We also provide some solutions that may alleviate their money troubles. Keep reading to learn more!
Paying off debt
Many senior citizens have had trouble with paying off their debt collected over the years. Many are finding that they have a fair amount of debt even during their retirement years due to having to assist their children during their young adulthood.
A report from the Consumer Financial Protection Bureau found that many senior citizens use credit cards to pay off large bills such as unexpected medical costs. Some many be paying off their mortgages late in life. This leaves elderly citizens with a lot of debt at the end of their life.
Elderly people should contact their lenders to find out if their loans could be adjusted and some interest rates could be changed to alleviate the stress on their finances. They may also consider working with a credit counselor to create a budget.
Reverse mortgages may cause problems
At the end of your life, you may consider getting a reverse mortgage, which allows you to delay repayments by using the equity of your house. However, older adults are still required to pay property taxes and homeowner’s
Senior citizens who fall behind in these payments may face foreclosure. Some may lose their homes. If the income on reverse mortgages is not enough to pay monthly bills, older adults may find their homes face foreclosure. As such, it is best to save reverse mortgages as a last resort option, said Jean Setzfand, senior vice president of programs for AARP.
One other option may be to sell your more pricey home so that you don’t have to worry about paying off your mortgage. Instead, you can move into a low cost assisted living community.
If you have had problems with paying off your debt or find the reverse mortgage appealing, consider the solutions we give. Work with your lender and credit counselor to pay off your debts and reduce your interest rate. Consider selling your home to move into an assisted living community instead.
All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.