Seniors acquiring more debt seems to be more the norm than the commercials featuring retirees driving convertible sports cars, travelling to exotic locations and wining and dining in upscale restaurants, you’ve no doubt watched. The question that seniors acquiring more debt must be asked is will debts prevent your retirement?
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Seniors acquiring more debt are not going to be living the life of luxury depicted on television. How many of you are drowning in so much debt that retirement isn’t even an option? According to the BMO Retirement Institute debt is the number one barrier preventing Canadians from saving for retirement and that their priority should be to retire free of debt, including a home mortgage.
The reality is:
- National Foundation for Credit Counseling says one-third of its 3 million clients last year were 55 or older.
- More than 41% of families with heads of household between age 55 and 64 had credit card debt in 2010 (up from 33% in 1989), according to the AARP Public Policy Institute and the Demos research group.
- The median total debt for 55- to 64-year-old households is $76,600, says the Employee Benefits Research Institute.
Among those retired Canadians with debt, a Harris/Decima poll for CIBC found:
- 37% are juggling two or more debt payments a month
- 39% are carrying credit card debt
- 30% have debt on their line of credit
- 16% are carrying debt on their mortgage, and
- 14% have loan debt
What should seniors acquiring more debt, or anyone with too much debt, to get debt under control? Make a budget, stick to it and pay down high interest debt like credit card debt. If these measures are not enough to deal with your debt issues, you need professional help.
Seniors acquiring more debt should contact a professional trustee as soon as possible. The Ira Smith team are here to help. With a cumulative 50+ years of experience, we deliver the highest quality of professional service. We offer practical advice so you can clearly see the way to move forward Starting Over, Starting Now. Contact Ira Smith Trustee & Receiver Inc. today.
