Getting Real About Credit Card Debt And Your Estate Plan

Young people love to remind you that your generation had a lot of things easier than they will ever have.  Homeownership was more affordable in your day, and so was everything else.  Job stability and retirement pensions were easier to find.  This does not mean that seniors are immune to financial hardships, though.  Years of high prices and decades of the rolling back of protections for workers have affected everyone.  Older people have been a source of financial support to the young generations who did not have access to the same perks that they enjoyed, but now even the people who once had a substantial financial cushion are feeling the pinch.  In fact, credit card debt is as big a problem for seniors as it is for everyone else.  Being debt free on your last day of work is not an option for most people, and the mere existence of a retirement account does not ensure that you will retire without debt.  If you drafted an estate plan but now your credit card debt is casting a shadow over it, contact an Orlando estate planning lawyer.

Credit Card Debt Is for Seniors, Too

According to the federal government’s Survey of Consumer Finances, seniors are feeling the effects of our tough economic situation especially strongly.  Across all age groups, the average outstanding credit card balance for an individual has doubled since 1992.  When you only consider consumers above the age of 65, the average credit card balance has quadrupled in the same period.

Housing costs are a major factor.  Nearly half of households spend more than a third of their monthly budget on housing.  This makes them more likely to resort to borrowing, such as by charging purchases on a credit card.  The difference is that seniors tend to be on a fixed income.  Even if they have not yet retired, as an increasing number of people are remaining in the workforce beyond age 65, their days of earning employment income are numbered.  This means that credit card debt is not a problem that they can kick down the road.

What Should You Do If You Are Approaching Retirement, but Credit Card Debt Is Standing in Your Way?

Ignoring your credit card debt is a bad idea at any age, but it is especially detrimental for seniors.  If you keep letting your credit card debt pile up, the matter will eventually end up in probate court, and the personal representative of your estate will face the unpleasant task of settling your credit card debt and then telling your heirs that they will inherit less than they were expecting, or even that they will inherit nothing at all.  Your lawyer can help you decide whether to settle your debt, file for bankruptcy, borrow a debt consolidation loan or reverse mortgage, or some combination of those solutions.

Contact Gierach and Gierach About Credit Card Debt After Retirement

An estate planning lawyer can help you ensure that your credit card debt does not wreck your estate plan.  Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.

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