Seniors carrying debt becomes the norm
Many Canadian seniors are struggling financially in what should have been a carefree retirement. We’ve done a series of blogs about seniors in debt:
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- Seniors Acquiring More Debt Delays Retirement
- Seniors Debt Relief: Gray Debt on the Rise
- Seniors in Debt Part 1: What Do the Golden Years Really Look Like?
- Seniors in Debt Part 2: Help for Seniors in Debt
- Seniors in Debt Part 3: Senior Credit Card Debt Relief or Declare Bankruptcy
- Seniors in Debt Part 4: Advice for Seniors with Credit Card Debt
- Seniors in Debt: Solve it Without Bankruptcy
Seniors carrying debt is not going away
However, this problem is not going away. In fact, seniors have now become so accustomed to living with debt that they are using it to finance their lifestyles instead of downsizing or cutting back on expenses. For the time being, seniors are not feeling the stress of carrying debt. Given that retirees and working seniors carrying debt are less likely to be taking steps to accelerate their debt repayment, the problem may very well get worse.
Seniors carrying debt not bothered by it
According to a survey conducted by Equifax for HomEquity Bank:
- A number of Canadians over 75 are still dealing with a mortgage and their numbers are rising
- 11.3 million Canadians 55 or older have some sort of debt. Of that figure, about 1.87 million are carrying a mortgage which is up 20% in two years
- Outstanding mortgage balances are up for every segment of seniors, which for the purposes of the survey was anyone over the age of 55
- In the 75-and-over category, the average senior with a mortgage had $133,944 outstanding, up 11% from two years ago
- The number of seniors carrying debt is also increasing in other credit categories, such as auto loans, bank loans, lines of credit and credit card debt
Yvonne Ziomecki, senior vice-president of marketing and sales of HomEquity Bank states, “A lot of people I talk to, they just don’t really care. This is how they manage their finances and they are perfectly comfortable with it”.
Seniors carrying debt need to take action now
This can be a recipe for disaster if interest rates rise. Where is the extra income going to come from? If you’re one of the seniors carrying debt, or anyone else who is relying on credit to support their lifestyle, give the Ira Smith Trustee & Receiver Inc. Team a call before interest rates rise and while you still have options. With immediate action and the right plan we can solve your financial problems and set you on a path to debt free and stress free living Starting Over, Starting Now.
