Seniors in debt or baby boomers in debt, remains a hot topic of conversation and that’s no surprise considering the latest findings. Equifax reports that Canadian consumers continued to increase their debt burdens, but seniors in debt, being consumers 65 and older, had the greatest increase since last year.
According to a new CIBC poll, 59% of retired Canadians say they’re carrying debt. And 19% of those say that their debt level has increased over the past year, while 36% report their debt level has stayed the same. Seniors in debt, defined as those Canadians over the age of 65, have the highest insolvency and bankruptcy rates in the country, according to a report by the Vanier Institute for the Family. Among those retired Canadian seniors in 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
As this is a really important issue, we devoted several blogs to seniors in debt – What Do The Golden Years Really Look Like?, Why Are The Majority Of Seniors in Debt?, and Should Seniors Try and Pay Off Their Debt Or Declare Bankruptcy? Another option for seniors trying to start over is a consumer proposal.
Should seniors in debt consider a consumer proposal? Consumer proposals are a very good option for seniors in debt who are retired. Since most people in financial trouble don’t have many assets, the most common reason for filing bankruptcy is to prevent a wage garnishment. Since retired seniors with credit card debt, or other debt, don’t have any wages, there are no wages that could be potentially garnished. And, it is very difficult, if not impossible, for a creditor to garnishee a pension. Therefore a consumer proposal may be the right choice for retired seniors in serious financial trouble. You may also hear the question in layman’s terms: should seniors file a debt proposal to gain protection? What is really meant is one of the bankruptcy alternatives, the consumer proposal.
If you are one of the may seniors in debt experiencing serious debt issues, contact a professional trustee as soon as possible. Ira Smith Trustee & Receiver Inc. will evaluate your individual situation and create a solid financial plan for moving forward so that Starting Over, Starting Now you can live a debt free life and enjoy your retirement. Contact us today.
Watch for our next blog when we’ll be discussing the debt issues plaguing baby boomers.